"Prof Asuming Urges Ghanaians to Embrace GHS 1 Fuel Levy, Says Power Crisis Must be Fixed"

Prof Asuming Urges Ghanaians to Embrace GHS 1 Fuel Levy, Says Power Crisis Must be Fixed

Economist and Senior Lecturer at the University of Ghana Business School, Professor Patrick Asuming, has urged Ghanaians to support the newly introduced GHS1 fuel levy, citing the urgency of resolving the country’s persistent energy sector crisis.

His comments follow the recent passage of the Energy Sector Levy (Amendment) Bill, 2025 by Parliament, which imposes a GHS1 per litre levy on petroleum products. The levy is expected to generate revenue to tackle Ghana’s ballooning energy sector debts and enhance power supply reliability.

Speaking on The Big Issue on Channel One TV on Saturday, June 7, Prof Asuming acknowledged the burden the levy may place on consumers but stressed that the long-term benefits of a stable energy sector far outweigh the short-term cost.

“As Ghanaians, we know the problems in the energy sector, and we’re better off accepting the GHS1 per litre levy, if it is indeed going to fix the problem, than wait for the whole thing to come crashing down on us,” he remarked.

Prof Asuming underscored the centrality of a functioning power sector to Ghana’s broader economic ambitions, including key policy initiatives such as industrialisation and the proposed 24-hour economy.

“Everybody knows that if we don’t deal with the energy sector problems, we’re not going anywhere. We can have all the other big plans, all these things about industrialisation, a 24-hour economy. Anything that we’re talking about, we have to address the energy sector,” he stated.

However, the economist expressed concern over the government’s handling of the policy’s rollout, particularly the timing and clarity of communication.

“My only issue is the timing and how it has been presented. The confusion about whether it is fuel only or not doesn’t help,” he noted.

Prof Asuming’s comments add to the growing public debate over the controversial levy, which has drawn sharp criticism from the opposition and segments of civil society, who have raised concerns about its impact on living costs and the manner in which it was passed under a certificate of urgency.

The government has defended the policy as a necessary intervention to mobilise the estimated US$4.9 billion required to settle debts and sustain power generation in the medium term.