Gh¢1 Levy Not Meant To Pay For Energy Sector’s Legacy Debts But— Energy Minister, John Jinapor

John Abdulai Jinapor, the Minister for Energy and Green Transition, has clarified that the newly implemented Energy Sector Levy is not intended to settle the sector’s legacy debts.

Instead, he explained that the levy is specifically meant to cover the cost of liquid fuel.

The Minister pointed out that liquid fuel expenses are not factored into the current electricity tariff system, creating financial difficulties for the government.

In an interview with JOY FM, Jinapor remarked, “Governance involves making tough decisions. It’s about managing circumstances effectively and choosing what we believe is the most appropriate course of action. No government takes pleasure in introducing taxes or levies on its citizens.”

We’ve been working diligently since taking office, but to be clear, this levy is not intended to pay off legacy debts,” he said. “We’ve conducted a thorough analysis of the energy sector, and the fundamental reality is that the liquid fuels we currently purchase are not included in the electricity tariff structure. This means that even if ECG were to collect 100% of electricity payments today, none of that revenue would go toward buying liquid fuels.”

He continued, “It typically takes between 18 months to two years to develop gas infrastructure—even if we started today. This is something that should have been done long ago. While the Finance Minister has been offering some assistance, it has been increasingly difficult to secure funding for liquid fuel procurement.”

“So what options do we have?” he asked. “We could increase electricity tariffs, rely on the Finance Minister for funds that simply aren’t available, or consider sharing the benefits from the recent drop in fuel prices.”

According to the Energy Minister, John Jinapor, the GHc1 Levy is not meant to pay for the Energy Sector’s legacy debts.

So what is it for? He explains here… #JoySMS. pic.twitter.com/EUbrxac13T

— Joy 99.7 FM (@Joy997FM) June 4, 2025

Source: Nkonkonsa.com