“Difficult but necessary” is how President Mahama defends the new fuel levy.
In order to stabilise the economy and ring-fence vital funding, President John Dramani Mahama has justified the government’s decision to impose a new fee on petroleum goods, calling it “difficult but necessary.”
A new law that levied a GHS1 fee on each litre of petrol was approved by Parliament on Monday.
Speaking Tuesday at the Jubilee House at the National Economic Dialogue 2025 final report presentation, the President said the levy is reasonable and wise, albeit acknowledging that the measure has caused Ghanaians to worry.
“We didn’t make this decision lightly,” he stated. “Even though it is challenging, it is essential and justified.”
The Consolidated Fund, which is where public revenue is typically deposited, will not get the proceeds from the new petroleum fee, according to President Mahama. He clarified that the money will be protected against what he called the “hazards” of the consolidated fund, guaranteeing that they be utilised only for their designated uses, such as providing critical energy infrastructure and protecting the economy from outside shocks.
This strategy guarantees that the money is safeguarded and efficiently allocated to the areas that require it the most.
In order to guarantee value for money, the President also pledged to take decisive action to address what he described as systematic inefficiencies in the petroleum industry, implying more monitoring, increased responsibility, and enhanced transparency.
Government officials argue the long-term advantages, such as economic stability and investment in energy resilience, greatly exceed the short-term inconvenience, even if the charge is predicted to cause a slight increase in petrol costs at the pumps.
The government is currently under pressure to close income leaks, lower fiscal deficits, and find long-term ways to finance development without becoming overly dependent on borrowing from outside sources.
President Mahama expressed hope that Ghanaians will eventually understand the move’s larger purpose despite popular scepticism.
Explainer
So where did all the previous billions go, and why is petrol prices going up by another GH₵1?
