The Minister for Energy and Green Transition, John Jinapor, has defended the recently approved GH¢1.00 petroleum levy, describing it as a timely and necessary fiscal measure to stabilise Ghana’s energy sector.
In an interview on Joy FM’s SMS program on Wednesday, June 4, Mr Jinapor explained that the government deliberately avoided imposing the levy earlier due to the high fuel prices at the time, which averaged around GH¢16.00 per litre—too costly for consumers to bear additional charges.
“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,” he said.
He added that recent government efforts have brought fuel prices down to about GH¢13.00 per litre, creating a reasonable opportunity to introduce the levy without significantly hurting consumers.
“At that time, if we had increased it, you can imagine the impact on Ghanaians. But today, the net effect is that you are still having a reduction of GH¢3.00 on a litre of fuel,” Mr Jinapor noted.
“It is better to do it today than to have done it yesterday, when it would have eroded your income; today, your purchasing power has increased because of the reduction of the value of the dollar,” he added.
The levy was approved by Parliament on Tuesday, June 3, despite widespread criticism, particularly from opposition New Patriotic Party (NPP) Members of Parliament.
Mr Jinapor assured that revenue generated from the levy would be directed toward vital infrastructural and operational needs within the energy sector to ensure reliable power supply and long-term sustainability.
He also reiterated the government’s commitment to transparency and accountability in managing the funds and called on Ghanaians to see the levy as an investment in national development.
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