Minister for Energy and Green Transition, John Jinapor, has defended the government’s introduction of a GH¢1.00 levy on petroleum products, describing it as a timely and strategic fiscal decision to strengthen Ghana’s energy sector.
In an interview on Joy FM’s Super Morning Show on Wednesday, June 4, Mr Jinapor argued that current market conditions made this the appropriate moment to implement the levy, following significant reductions in fuel prices.
“When we assumed office, fuel prices were as high as GH¢16.00 per litre. Imposing a tax at that point would have only worsened the burden on Ghanaians,” Jinapor said. “Now that fuel is around GH¢13.00, it’s a better moment to share the benefit with citizens while taking a small portion to secure energy sector stability.”
The levy was passed by Parliament on Tuesday, June 3, despite strong objections from the opposition New Patriotic Party (NPP), who argue it imposes additional hardship on already stretched consumers.
But Jinapor insisted the move is fiscally responsible. “This is not about squeezing consumers; it’s about timing. Introducing the levy now ensures we don’t erode purchasing power while generating revenue for essential infrastructure,” he explained.
He noted that the fall in the value of the US dollar and lower fuel costs have boosted consumer power, making the GH¢1 charge more manageable. “You’re still seeing a net reduction of GH¢3 per litre compared to where we started,” he added.
The Minister also reassured the public that proceeds from the levy will be transparently managed and directed toward improving energy infrastructure and maintaining uninterrupted power supply.
“This is an investment in our future — not just another tax,” Jinapor stated. “The goal is long-term energy security, not short-term gain.”
The government’s decision comes amid ongoing efforts to stabilise the energy sector, which has faced supply challenges and mounting operational costs over the past few years.
