GH₵1 fuel levy a necessary sacrifice to avert power crisis – Nii Lantey Vanderpuye

The National Coordinator of the District Road Improvement Programme (DRIP), Nii Lantey Vanderpuye, has defended the government's introduction of a GH₵1 per litre fuel levy, describing it as a critical step to rescue Ghana’s struggling energy sector from imminent collapse.

Speaking on Channel One TV’s Breakfast Daily on Thursday, June 5, Mr Vanderpuye explained that the levy, passed under the Energy Sector Levy (Amendment) Bill, 2025, would generate an estimated GH₵5.7 billion annually to clear mounting debts in the energy sector and guarantee stable fuel supply to thermal power plants across the country.

“The path we’ve chosen must be sustainable,” Mr Vanderpuye stated. “We cannot afford to go back to the dark days of dumsor. If contributing GH₵1 per litre means we keep the lights on, then it is a sacrifice worth making.”

He revealed that the sector currently bears a debt load of GH₵3.7 billion, while legacy arrears—particularly from the Ghana Grid Company (GRIDCo) and the Electricity Company of Ghana (ECG)—continue to strain the system. He singled out a shocking GH₵68 billion owed by the energy sector clearing house as evidence of the scale of the financial crisis.

Framing the levy as a targeted intervention rather than a general tax, Vanderpuye insisted the decision was born out of necessity. “This is not about deception or shifting promises. This is about survival. Do we want to wake up to a country without power or prepare today to avoid that future?”

He contrasted the current levy with the controversial e-levy imposed under the previous administration, arguing that the current economic context—marked by a stabilised cedi and declining fuel prices—justifies the call for public support.

“This government has been transparent and accountable,” he said. “In a time where fuel prices have dropped from GHS16 to under GHS12, this is the moment we ask Ghanaians to contribute to sustaining the power sector.”

Addressing criticism that the levy contradicts the government’s earlier commitment not to introduce new taxes, Mr Vanderpuye maintained that energy security is non-negotiable and the alternative would be far more costly.

“If we don’t contribute today, the alternative is to increase electricity tariffs by as much as 50%. Would you rather pay GHS1 per litre of fuel now or endure a spike in your electricity bill?” he asked.

He further noted that the levy forms part of broader government reforms aimed at improving efficiency in energy procurement and delivery, while securing the long-term viability of the sector.

“The government is not just slapping on taxes. We’re trying to prevent a looming crisis. Let’s behave like the ant and prepare for tomorrow, not like the grasshopper that dances while danger approaches,” he cautioned.

Earlier, Finance Minister Dr Cassiel Ato Forson disclosed that Ghana requires an additional $3.7 billion to settle arrears in the power sector, along with a further $1.2 billion to fund fuel purchases for the 2025 fiscal year.