The Executive Secretary of the Public Utilities and Regulatory Commission (PURC), Dr Shaffic Suleman, says the GH¢1 levy on petroleum products has played a major role in addressing Ghana’s long-standing energy sector debts and supporting the stability of electricity supply.
He explained that revenue from the levy, alongside government interventions, has been used to settle arrears owed to independent power producers (IPPs), gas suppliers, and other stakeholders within the energy value chain.
Speaking on Joy News’ PM Express Business Edition, Dr Suleman indicated that the accumulated funds amount to what he described as approximately $8 billion, according to a report from the Ministry of Finance.
“A report from the finance ministry indicates that the ¢1 on the petroleum products that was passed, has been used… that money has accumulated. If you see the report, that’s about $8 billion,” he said.
He noted that the funds have been channelled into several critical payments, including arrears owed to IPPs and gas supply obligations, as well as financial restructuring within the sector.
According to him, part of the funds has also been used to restore risk guarantees linked to major gas production arrangements, including the Sankofa Gye Nyame project, in partnership with ENI.
“We’ve also used some of it to pay to get back the risk guarantees on the Sankofa Gye Nyame gas production,” he stated.
Dr Suleman added that the payments have helped improve Ghana’s credit outlook by reducing exposure to accumulated energy sector debts and restoring confidence among international partners.
He further disclosed that additional funds have been used to settle outstanding obligations to gas suppliers under agreements with the Sankofa and Jubilee partners.
“I think we’ve also used that amount to pay for the cost of the gas… then we are also paying to the Jubilee Partners Gas Supply,” he said.
According to him, these financial interventions are directly linked to maintaining a stable electricity supply across the country.
“So we are using all that… to pay and sustain that part, and that’s actually what is keeping the light on,” he added.
Dr Suleman stressed that the energy sector requires continuous financial support rather than one-off payments, noting that monthly funding requirements remain significant.
He revealed that the sector requires an average of about $92 million every month to ensure uninterrupted power generation.
“So every month on average is $92 million… what it means is that aside from the tariff we are paying, the Ministry of Finance is also putting in $92 million to make the lights come on,” he explained.
He concluded that while debt levels have reduced significantly, sustained funding remains essential to maintaining stability in Ghana’s power supply system.
