President John Dramani Mahama has assured Ghanaians that funds generated from the newly approved GHC1 fuel levy will undergo regular audits.

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He explained the move is to ensure accountability and transparency.

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"The fund will be regularly audited and audit reports made public to ensure its transparent use. While initially much of this revenue will go into the purchase of fuel to ensure a stable supply of electricity, with the ongoing developments in the upstream sector, we expect to receive more gas from our E&I Sankofa and Jubilee and TEN Fields.

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"With the assurance of additional gas through the West African Gas Pipeline, we expect to substantially reduce the use of liquid fuels in our energy mix. At that stage, the resources generated by this increased levy will be channelled to pay down accumulated legacy debts in the power sector," President Mahama added.

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President Mahama made this known while speaking at the presentation of the final report of the National Economic Dialogue 2025 on Wednesday, June 4.

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He reiterated the government's decision to clear the accumulated legacy debts in the power sector with part of the revenue generated, yet to be implemented, levy.

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He stated that "initially much of this revenue will go to the purchasing of fuel to ensure stable power of electricity."

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Government will also reduce the use of liquid fuel in the energy mix as it expects more gas from the ENI, Sankofa, Jubilee and TEN fields, as well as West African Gas Pipeline.

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"At that stage, the resources generated by this increased levy will be channeled to pay accumulated legacy debts in the power sector," he added.

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The Majority side of the House approved the bill after the Minority side staged a walkout.

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Energy and Green Transition Minister, John Abdulai Jinapor, has defended government's move despite opposition from some stakeholders in the energy sector.

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He noted that the timing of the introduction of the levy is apt as the cedi continues to appreciate against major trading currencies.

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The minister projects to generate revenue ranging between GH¢5 billion and GH¢6 billion to support the procurement of liquid fuel.

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"Fuel was around GH¢16.00, and a sensitive government will not slap a tax when fuel is GH¢16.00. You couldn't have imposed that tax around that time when fuel was still very high, and so you needed to work to bring fuel down to this level and share the gain with Ghanaians. At that time, if we had increased it, you can imagine the impact on Ghanaians, but today, the net effect is that you are still having a reduction of GH¢3.00 on a litre of fuel," he explained.

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"It is better to do it today than to (have done) it yesterday, when it would have eroded your income; today, your purchasing power has increased because of the reduction of the value of the dollar," he said while speaking on JoyFM.

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