The Minister for Government Communications, Felix Kwakye Ofosu, says proceeds from the GHC1 levy on petroleum products have played a key role in stabilising Ghana’s power sector, even as government continues to pay down inherited energy sector debts.
Speaking at the Government Accountability Series at Jubilee House on January 14, Mr Ofosu explained that the levy was introduced to close a long-standing financing gap in the procurement of liquid fuels for thermal power plants.
“The estimates show that on a yearly basis, about $1.2 billion is required for purposes of importing liquid fuels to fire thermal plants,” he said, arguing that failure to address the gap would have worsened sector challenges inherited by the current administration.
Responding to questions on how much revenue has been raised, the minister said figures would be made available through the Finance Ministry’s petroleum revenue reports.
“What is clear is that it certainly has been put to good use and has contributed significantly to achieving stability in the power sector,” he stressed.
On energy sector debt, Mr Ofosu clarified that government had not claimed to have cleared all outstanding liabilities. He referenced a recent Finance Ministry statement indicating that about $1.4 billion had been paid to independent power producers and other stakeholders.
“The statement did not suggest that that was all that was owed,” he noted. “It only emphasized government’s commitment to ensuring that we pay down the energy sector debts.”
He said stricter adherence to the cash waterfall mechanism had restored liquidity across the sector, contributing to steady electricity supply.
“For several months now, electricity supply has been stable,” he added, assuring that further payments would follow to fully clear the debt over time.
