IMF Backs Ghana’s GH¢1 Fuel Levy as Crucial Step Toward Economic Stability
IMF endorses Ghana’s new fuel levy as a vital tool for fiscal reform, while stakeholders urge transparency amid public concerns
- IMF supports Ghana’s GH¢1 per litre fuel levy to address energy sector debt and boost fiscal stability
- The levy faces criticism for increasing consumer costs
- Implementation delayed to June 16, 2025
The International Monetary Fund (IMF) has thrown its support behind Ghana’s introduction of a GH¢1 Energy Sector Shortfall and Debt Repayment Levy on every litre of fuel, labeling it a vital component of the country’s economic recovery efforts under the Extended Credit Facility (ECF) programme.
Designed to address chronic debt and financial gaps in the energy sector, the fuel levy is seen as a strategic move by the IMF to help the government meet its broader fiscal reform targets.
During a recent press briefing, Julie Kozack, Director of the IMF’s Communications Department, emphasized the importance of the measure:
“This new levy will help raise necessary funds to address structural problems in Ghana’s energy sector while also strengthening the country’s ability to meet its fiscal commitments,” she stated.
Despite IMF approval, the levy has sparked backlash from the Minority in Parliament, who argue it places an additional burden on consumers already facing economic hardship. However, the government has defended the decision, saying the current fuel prices are still lower compared to those during previous high-inflation periods, and that the cost impact will be minimal.
To ease implementation, the government and the Chamber of Oil Marketing Companies have agreed to delay the levy’s rollout from June 9 to June 16, 2025.
Meanwhile, energy sector stakeholders—including the Chamber of Petroleum Consumers—are calling for the government to use the extra time to engage more deeply with the public and ensure greater transparency about how the funds will be used.
