President John Dramani Mahama has justified the government’s introduction of a new GH¢1 levy on every litre of fuel, describing it as a “difficult but necessary” step to stabilise the economy and secure funding for critical national priority projects.
The levy was passed by Parliament on Tuesday, June 3, 2025, under a Certificate of Urgency. The levy is expected to generate revenue for strategic investment in the energy sector and shield the economy from external shocks.
Speaking at the Jubilee House during the presentation of the final report of the 2025 National Economic Dialogue, President Mahama acknowledged the public’s concerns but insisted that the levy is both prudent and unavoidable.
“This was not a decision we took lightly,” he said. “Though difficult, it is necessary and justifiable.”
He explained that revenue from the levy will be ring-fenced and excluded from the Consolidated Fund, where most public revenues are traditionally deposited. Instead, it will be directed exclusively towards strategic infrastructure development and cushioning the economy against volatility.
“This approach ensures the funds are protected and effectively deployed to where they are most needed,” Mahama stressed.
The President also vowed to tackle longstanding inefficiencies in the petroleum sector, promising tighter oversight, improved transparency, and stronger accountability mechanisms to guarantee value for money.
While the levy is expected to result in a marginal increase in fuel prices at the pump, government officials argue that the long-term economic benefits, including enhanced energy security and macroeconomic stability, will outweigh the short-term impact.
By: Ekow Annan/newsalertgh.com
