It Is Premature to Remove GH¢1 Fuel Levy - Lamtiig A. Apanga

The Acting Deputy Chief Executive Officer of the Gaming Commission of Ghana, Lamtiig A. Apanga, has cautioned against the immediate removal of the GH¢1 fuel levy, urging policymakers to carefully consider the timing and possible economic consequences before taking such a step.

Speaking on The Big Issue on Channel One TV on Saturday, March 21, Mr. Apanga acknowledged that although the levy has largely fulfilled its intended purpose, particularly in supporting the energy sector and addressing legacy debts, its removal at this stage could negatively affect the country’s economic stability.

He explained that the relative improvement in Ghana’s power supply has been partly sustained through payments made to Independent Power Producers (IPPs) using revenue generated from the levy. According to him, these payments have enabled the IPPs to keep their plants operational and maintain electricity supply nationwide.

Mr. Apanga further warned that removing the levy at a time when fuel prices are already high could expose the country to the risk of another power crisis, which could significantly disrupt economic activity.

He noted that the Ministry of Finance continues to monitor the situation and will review the levy when conditions are more appropriate.

While acknowledging that calls for the removal of the levy are understandable, he stressed that the policy still plays an important stabilising role and may need to remain in place for some time longer to safeguard progress made in the energy sector.

His remarks come amid ongoing public debate over the GH¢1 Energy Sector Levy, with some critics arguing that it should be scrapped since the debts it was introduced to address are believed to have been settled. However, concerns remain about the broader implications for electricity supply and economic stability if the levy is withdrawn too soon.