Government Defends New Petroleum Levy, Cites Stabilization of Energy Sector as Key Motivation

The Minister for Energy and Green Transition, John Jinapor, has justified the newly introduced GH¢1.00 petroleum levy, describing it as a necessary fiscal measure to ensure the stability of Ghana’s energy sector. Speaking in an interview on Joy FM’s SMS on Wednesday, Jinapor emphasized that the timing of the levy’s implementation was carefully considered to minimize the financial burden on citizens.

The minister explained that the government had delayed introducing the levy upon assuming office due to the then-exorbitant prices of petroleum products, which peaked at around GH¢16.00 per litre. At the time, imposing an additional charge would have placed undue strain on consumers already grappling with high fuel costs.

However, recent government interventions have led to a decline in fuel prices to approximately GH¢13.00 per litre, creating what Jinapor described as a “favorable window” to implement the levy. He argued that the current reduction in fuel costs provides some relief to Ghanaians, making the additional GH¢1.00 levy more manageable.

“A responsible government does not impose new taxes when fuel prices are at record highs,” Jinapor stated. “Back when petrol was selling at GH¢16.00, introducing this levy would have been detrimental to consumers. But now, with prices down by GH¢3.00, the net effect is that Ghanaians still benefit from lower costs compared to previous months.”

He further noted that the depreciation of the US dollar has contributed to improved purchasing power, making the current period more opportune for the levy’s introduction. “Implementing this measure today is far more prudent than doing so earlier, when it would have further eroded household incomes,” he added.

The levy is expected to generate additional revenue to support critical energy sector reforms, including debt management and infrastructure upgrades. While some critics have questioned its timing, the government maintains that the move is a strategic step toward long-term energy sector sustainability.

As the new levy takes effect, stakeholders will be closely monitoring its impact on fuel prices and the broader economy. The government has assured the public that the funds will be utilized transparently to bolster Ghana’s energy resilience and drive green transition initiatives.

Source: GhanaFeed.Com