Accra, March 24, – The Minister of Energy and Green Transition, Mr. John Abu Jinapor, has urged caution over calls to scrap the one Ghana cedi fuel levy per litre, warning that abrupt action could have adverse effects on the national economy.
Speaking before Parliament’s Governance Assurance Committee on Tuesday, Mr. Jinapor said the government must carefully balance citizen relief with economic stability. “We should avoid populist decisions that could destabilise the economy,” he stated.
The Minister noted that while he remained open to consultations on the issue, any decision to remove the levy should include an alternative funding mechanism to cover energy sector obligations.
Reflecting on past measures, Mr. Jinapor cited the free electricity policy during the 2020 COVID-19 pandemic, explaining that although it offered temporary relief, the financial cost was ultimately absorbed by the nation.
Introduced in 2025 under the Energy Sector Levies (Amendment) Act, the levy was intended to support debt clearance in the energy sector and maintain a reliable electricity supply. Critics, however, argue that it has become burdensome amid rising global fuel prices, further exacerbated by the ongoing Middle East conflict involving Iran, Israel, and the USA.
He confirmed that the Ministry of Energy, in collaboration with the Ministry of Finance and other stakeholders, is reviewing the possibility of scrapping the levy but stressed that fiscal sustainability remains paramount.
GHBUSS
March 24, 2026
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