Felix Kwakye Ofosu, Presidential Spokesperson and Minister of State for Government Communications, commended the GH¢1 fuel levy—known as the “D-Levy” under the Energy Sector Levies (Amendment) Act, 2025 (Act 1141)—for its pivotal role in stabilizing Ghana’s energy sector.
Introduced on July 16, 2025, the levy generates revenue to cover debts and funding shortfalls, particularly from costly liquid fuels used in thermal plants.
Speaking at the 2026 maiden Government Accountability Series Press Conference at the Presidency in Accra, Ofosu explained the levy’s purpose.
“The whole idea of the GH¢1.00 Fuel Levy was to ensure that expensive liquid fuels purchased for firing thermal plants—but not factored into tariff bills—were addressed,” he said. “Estimates show about $1.2 billion is needed yearly for these imports. Without bridging this gap, it poses a major challenge, on top of inherited sector issues.”
Ofosu highlighted the levy’s impact, noting the Finance Ministry will report collections in annual petroleum receipts to Parliament.
“What is clear is that it has been put to good use and contributed significantly to power sector stability,” he added. “When we took over, electricity was unstable. Now, supply has been reliable for months—no outages as many feared.”
The Finance Ministry recently announced $1.4 billion in cleared energy debts, though Ofosu stressed this isn’t the full amount. “A significant chunk has been cleared in just a year, bringing relief to sector players.”
He pointed to lapses in the cash waterfall mechanism, which ensures fair payments to all players, including Independent Power Producers (IPPs).
“For too long, some IPPs weren’t getting their share,” Ofosu said. “The Finance and Energy Ministers have enforced adherence, so funds are now flowing, driving the stability we’ve seen. The statement underscores our commitment to paying down these debts.”
Story by: Emmanuel Asiedu Agyare (Onokwafo Yaw Asiedu)/ Ahotoronline.com I Ghana
@onokwafoasiedu
Kwakye Ofosu Praises GH¢1 Fuel Levy for Tackling Energy Debt Crisis
