Legal practitioner Martin Kpebu has urged the government to ensure transparency in the use of funds generated from the newly introduced GHS1 fuel levy, which aims to address Ghana’s growing energy sector debt.

Speaking on TV3’s KeyPoints on Saturday, June 7, Kpebu encouraged Ghanaians to support the levy, describing it as essential to fixing the country’s energy challenges. However, he stressed the need for strict oversight to ensure that the proceeds are used solely for their intended purpose.

“This is a levy we must fully support because of the debt crisis in the energy sector. Government must, however, ensure the proceeds are used for its intended purpose,” he stated.

His comments echo those of Dr. Ishmael Yamson, Chairman of the National Economic Dialogue Committee, who also emphasized that transparency is key to public acceptance of the levy. According to Dr. Yamson, Ghanaians will only support the measure if they see clear evidence that the funds are being used appropriately.

“The President says it will be ring-fenced to liquidate the accumulated backlog of debt. Let us see that that is done — let’s see evidence, let it be audited,” Dr. Yamson said, speaking to journalists after presenting the 2025 National Economic Dialogue Report to the President.

He warned that failure to provide transparency will trigger public agitation, adding, “What irritates Ghanaians is when you lie to them — that you’re going to do something, and you don’t do it.”

President John Dramani Mahama, speaking at the Jubilee House on Wednesday, June 4, defended the introduction of the GHS1 fuel levy, calling it a “difficult but necessary” decision aimed at saving Ghana’s debt-ridden energy sector and averting future power crises.

“This decision, though difficult, is necessary and justifiable,” President Mahama said. “It is part of a broader strategy to liquidate debt and stop the bleeding in the power sector.”

The President disclosed that the sector carries more than US$3.1 billion in debt, with an additional US$1.8 billion required to secure fuel for thermal power generation in the coming months.

The levy, passed by Parliament under a certificate of urgency as part of the Energy Sector Levy (Amendment) Act, 2025, imposes a GHS1 tax per litre of fuel sold nationwide.

Mahama assured Ghanaians that revenue from the levy—projected at GHS5.7 billion annually—will be ring-fenced, audited regularly, and made public to ensure accountability.

According to the President, the levy’s proceeds will not be deposited into the Consolidated Fund. Instead, they will be used exclusively to:

Pay down legacy energy sector debts

Finance fuel purchases critical for power generation

Prevent recurring power shortages

President Mahama concluded by urging national support for the measure, describing it as a responsible, long-term solution to one of Ghana’s most pressing economic and infrastructure challenges.

“We mean well. This is a step toward lasting energy security and economic stability,” he affirmed.