Energy Minister: GH¢6.7bn debt forcing return of fuel levy

Ghanaians should prepare for difficult decisions as the government pushes ahead with reforms in the energy sector, the Minister for Energy and Green Transition, Mr John Jinapor, has stated.

He made the remarks during the Government Accountability Series media briefing held in Accra on Wednesday, July 16, 2025.

According to Mr Jinapor, although progress has been made in stabilising the power sector, the road to full recovery will require sacrifices from both the government and citizens.

“We’ve begun to see real improvement in the sector,” he said, citing regular payments to major players including ENI, Tullow, and the West African Gas Pipeline Company (WAPCo). “But Ghanaians should understand that the recovery will come with tough but necessary measures.”

One of these measures, he announced, is the reintroduction of the Energy Sector Recovery Levy on petroleum products, which took effect on Wednesday.

The levy, which had been suspended due to global geopolitical tensions, is now being redirected solely to clear legacy debts.

Mr Jinapor said the Electricity Company of Ghana (ECG) alone is saddled with outstanding liabilities of about GH¢6.7 billion. “Without action, these debts will cripple our energy infrastructure,” he warned.

He explained that Ghana is gradually moving away from relying on the Ministry of Finance to meet payments to suppliers such as Nigerian Gas and WAPCo. “We’re working towards full cost recovery and financial independence,” he said.

Mr Jinapor noted that public understanding and support would be crucial during the implementation of the reforms. “This is not business as usual. These reforms require all of us — citizens and the government alike — to play our part,” he stressed.

He added that the reforms would be reviewed regularly and adjusted when necessary. “If the evidence shows we must recalibrate, we will not hesitate to do so,” he said.