President John Dramani Mahama has justified the newly introduced GHS1 levy on every litre of fuel, calling it a “difficult but necessary” step to protect the economy and secure critical investments.
Parliament passed the new petroleum levy on Monday, sparking mixed reactions from the public. Speaking at the Jubilee House during the presentation of the National Economic Dialogue 2025 report, President Mahama acknowledged public concerns but stressed the levy’s importance.
“This was not a decision we took lightly,” he said. “Though difficult, it is necessary and justifiable.”
The President explained that proceeds from the levy will be kept outside the Consolidated Fund to avoid misallocation. Instead, the revenue will be ring-fenced for strategic energy infrastructure and to cushion the economy from global shocks.
He added that tighter oversight and better transparency in the petroleum sector are on the horizon to ensure the funds deliver real value.
While fuel prices are expected to rise slightly, officials argue that the long-term benefits, including economic stability and energy resilience, outweigh the short-term burden.
The levy comes amid mounting pressure on the government to reduce fiscal deficits, plug revenue gaps, and reduce reliance on external loans.
Despite criticism, Mahama expressed confidence that Ghanaians will recognize the policy’s broader national benefits.
