GHC1 Fuel Levy Necessary to Solve Energy Crisis — Edem Agbana Defends Policy

Member of Parliament for Ketu North, Edem Agbana, has defended the government’s controversial introduction of a GHC1 fuel levy on petroleum products, describing it as a vital move to resolve Ghana’s persistent energy sector challenges.

Speaking on The Big Issue on Channel One TV on Saturday, June 7, 2025, Agbana justified the amendment to the Energy Sector Levy Bill, 2025, which was passed by Parliament on June 3, arguing that the move demonstrates a non-partisan commitment to fixing the nation’s power and energy supply issues.

“We inherited a challenge, and our approach to the challenge is that we need to solve this problem once and for all. We have decided not to play politics with it,” he said.

The newly introduced fuel levy is expected to generate approximately GHC 5.7 billion annually—a sum Agbana admitted may not completely erase energy sector debts but will go a long way in stabilising the power supply and reducing financial burdens on the sector.

“The challenge we are confronted with in the energy sector is fundamentally a financial issue, so you need to raise money,” he explained. “This levy will help, but we are also working on other initiatives to comprehensively address the crisis.”

Agbana insisted that the government is not simply passing the financial burden onto Ghanaians but is adopting a holistic strategy that tackles the issue across multiple fronts.

“We’re not only asking citizens to pay more. We’re also looking at reforms, accountability, and sector-wide interventions to find a lasting solution,” he added.

The GHC1 levy has drawn mixed reactions. While Independent Power Producers (IPPs) have welcomed it as a practical measure to clear long-standing arrears owed to them, the Chamber of Petroleum Consumers (COPEC) has opposed the increase, calling for alternative financing strategies that don’t further burden consumers.

Despite the criticisms, Agbana stood by the government’s approach, calling the levy a “necessary intervention” to fix a sector that is both financially constrained and operationally challenged.