Economist and University of Ghana professor, Godfred Alufar Bokpin, has endorsed the government’s newly introduced GH¢1 fuel levy, describing it as a necessary, but temporary measure to stabilise Ghana’s struggling energy sector.
Speaking on Joy FM’s Super Morning Show, Prof. Bokpin acknowledged that the levy may be unpopular but is essential under current economic conditions and as part of Ghana’s ongoing IMF-supported reform programme.
“There are painful decisions ahead, especially in the energy sector,” he said. “With strict budget cuts and structural reforms, we need to find ways to maintain macroeconomic stability while addressing the energy sector’s financial gaps.”
He argued that the recent cedi appreciation has allowed the levy to be introduced without significantly increasing pump prices, making it a “practical and timely” intervention.
However, he was clear about the levy’s temporary nature:
“This should not be permanent. The government must return to Parliament to withdraw it if macroeconomic conditions worsen or the cedi weakens again.”
Prof. Bokpin also cautioned that the current currency strength lacks long-term structural support. Without real productivity and export growth, the gains may be short-lived.
He added that while energy sector reforms are underway, their impact will take time. In the interim, the levy provides reassurance to investors and development partners.
“We needed something urgent to signal that we can meet our obligations, especially if we expect the private sector to participate in energy sector restructuring.”
