Ghana's Fuel Levy: Addressing Power Sector Debt or Burdening Consumers?

Ghana's GHS1 Fuel Levy: Addressing Power Sector Debt or Burdening Consumers? Ghana recently implemented a GHS1 levy on every litre of fuel. This decision has sparked debate, with concerns raised about its potential impact on consumers. To clarify the situation, JoyNews interviewed Dr. Kwabena Donkor, a former Power Minister. He explained that this isn't a new tax but an adjustment to an existing one. The increased revenue aims to tackle the power sector's significant liquidity problems, accumulated over several years. "This isn’t a new levy—it’s an existing one with an increased rate, aimed at tackling the power sector’s major liquidity challenges," stated Dr. Donkor. He emphasized the need for a two-pronged approach: increasing revenue to address legacy debt and improving efficiency within the power sector to reduce costs. The video highlights the challenges faced by the power sector, showing images of power infrastructure and electricity meters. Dr. Donkor's explanation offers a clearer understanding of the government's rationale behind the levy, providing context for the ongoing public discussion.