Minister for Energy and Green Transition John Jinapor has defended the newly approved GH¢1 petroleum levy policy as a prudent fiscal intervention necessary to stabilize the country’s energy sector.
Jinapor explained that the government had refrained from introducing the levy earlier due to the high cost of petroleum products at the time.
Speaking in an interview, he noted that fuel prices had previously hovered around GH¢16.00 per litre, making additional charges too burdensome for consumers.
However, recent government interventions have reduced fuel prices to approximately GH¢13.00 per litre, creating what he described as a reasonable window to introduce the levy.
“Fuel was around GH¢16.00, and a sensitive government will not slap a tax when fuel is GH¢16.00. You couldn’t have imposed that tax around that time when fuel was still very high, and so you needed to work to bring fuel down to this level and share the gain with Ghanaians.”
Parliament approved the levy on Tuesday, June 3, despite strong opposition from New Patriotic Party (NPP) Members of Parliament, who criticized the measure as an unnecessary burden on consumers.
The levy is expected to generate between GH¢5 billion and GH¢6 billion, with the revenue earmarked for critical infrastructural and operational needs within the energy sector.
Despite the backlash, Jinapor maintained that the levy is essential for ensuring consistent fuel supply and long-term sustainability.
He reassured Ghanaians that the government remains committed to transparency and accountability in the utilization of the funds, urging citizens to view the measure as an investment in national development.
