The Member of Parliament for Ketu North, Edem Agbana, has strongly defended the government’s introduction of a GHC1 fuel levy, calling it a critical intervention aimed at resolving the persistent financial crisis in Ghana’s energy sector.
Speaking on The Big Issue on Channel One TV on Saturday, June 7, 2025, Agbana described the levy—introduced through the recently amended Energy Sector Levy Bill, 2025—as a bold and necessary step toward stabilising the country’s energy landscape.
“We inherited a challenge, and our approach is to solve this problem once and for all,” he stated. “We have decided not to play politics with it.”
The levy, passed by Parliament on June 3, is projected to raise an estimated GHC5.7 billion annually. According to Agbana, while the revenue may not be entirely sufficient, it will contribute meaningfully to reducing sector debts and improving the reliability of electricity supply.
“The challenge we are confronted with in the energy sector is fundamentally a financial issue, so you need to raise money,” he said. “This GHC5.7 billion won’t be enough, but it’s part of a broader set of measures.”
He added that the government’s strategy goes beyond shifting the financial burden onto consumers.
“We are not just placing a burden on the Ghanaian people. The government is taking a comprehensive approach to address the issue sustainably.”
The passage of the fuel levy has sparked mixed reactions. While Independent Power Producers (IPPs) have welcomed the move, citing it as a step toward clearing outstanding debts owed them, the Chamber of Petroleum Consumers (COPEC) has criticised the levy, urging the government to explore alternative funding sources rather than increasing fuel prices.
Despite the divided opinions, Agbana insisted the measure is a necessary sacrifice to tackle the core financial constraints hampering the energy sector’s performance.
