Deputy Minister for Communication, Technology and Innovation, Mohammed Adams Sukparu, has urged the government to explore measures to cushion consumers against rising fuel prices but insists that suspending the GH¢1 Energy Sector Levy is not the right approach.
Hon. Sukparu acknowledged calls by the Chamber of Oil Marketing Companies (COMAC) for a temporary suspension of the levy, describing the appeal as legitimate. However, he argued that the tax remains essential to maintaining stability in Ghana’s energy sector.
According to the Deputy Minister, the GH¢1 levy was introduced to enable the government to settle outstanding debts owed to Independent Power Producers (IPPs), whose unpaid invoices had previously threatened the country’s electricity supply.
“The call is in the right direction because if you look at where fuel prices are today, I think it is a good call for government to step in. But we should also bear in mind that we must have a stable power sector,” Sukparu said.
He explained that although the levy has been in force for about a year, the accumulated debt within the energy sector has not yet been fully cleared. He noted, however, that revenue generated from the levy has significantly strengthened the government’s capacity to meet its financial obligations to power producers, contributing to Ghana’s relatively stable electricity supply.
Sukparu cautioned that suspending the GH¢1 levy could undermine the progress made in stabilizing the power sector, stressing that the government must continue to honor its commitments to electricity producers.
“I am against suspending the one cedi levy, but there are other levies on petroleum products that can be looked at. We can go back to the drawing board and identify other margins or levies that can be adjusted to cushion consumers without affecting power stability,” he stated.
The Deputy Minister further attributed the recent increase in fuel prices largely to developments on the international oil market rather than domestic economic conditions.
