Gov’t won’t scrap GH¢1 fuel levy but will cushion consumers – Mohammed Adams Sukparu

Deputy Minister for Communication, Technology and Innovation, Mohammed Adams Sukparu, has expressed confidence that the government will consider calls to ease the burden of rising fuel prices but maintained that suspending the GH¢1 Energy Sector Levy is not the appropriate solution.

Sukparu said the appeal by the Chamber of Oil Marketing Companies (COMAC) for a temporary suspension of the levy was valid and deserved government attention. However, he argued that the levy remains critical to sustaining gains made in Ghana’s power sector.

According to him, the GH¢1 levy was introduced to help government settle debts owed to Independent Power Producers (IPPs), whose unpaid invoices had threatened the country’s electricity supply.

“The call is in the right direction because if you look at where fuel prices are today, I think it is a good call for government to step in. But we should also bear in mind that we must have a stable power sector,” he said.

Sukparu explained that although the levy has been in place for about a year, the accumulated debt in the energy sector has not yet been fully cleared. He, however, noted that the revenue generated has significantly improved government’s ability to meet its obligations and has contributed to the country’s relatively stable electricity supply.

He stressed that removing the GH¢1 levy could undermine efforts to sustain power stability, warning that government must continue to honour its financial commitments to electricity producers.

“I am against suspending the one cedi levy, but there are other levies on petroleum products that can be looked at. We can go back to the drawing board and identify other margins or levies that can be adjusted to cushion consumers without affecting power stability,” he stated.

Sukparu also attributed the recent rise in fuel prices largely to developments on the international market rather than domestic economic factors.