The recently implemented GH¢1.00 fuel levy has been clarified by Energy Minister John Abdulai Jinapor, who also outlined its limitations in tackling Ghana’s energy sector issues.
Jinapor stated during an appearance on the Citi Breakfast Show that the main purpose of the charge is to assist the government in acquiring liquid fuel, which is essential for maintaining electricity generation.
The charge will not pay the entire cost, he noted, even though it is anticipated to produce between GH¢5 billion and GH¢6 billion, or around 60% of the sector’s liquid fuel consumption.
“This amount, if you look at the object clearly, we talked about the debt that we have and how unsustainable the debt is,” Jinapor said.
“But when you look at the real object, it is to help us first to procure liquid fuel, and within the veil of the liquid fuel, it will be about GH¢1.2 billion. The government said that this GH¢1 would give us about GH¢5–6 billion, which is about 60% of what we require.”
Even with the levy’s contribution, he continued, more money will be required.
Therefore, Jinapor stated, “So, even with this GH¢1, the Finance Minister will still have to assist us in getting some additional money to buy liquid fuel.”
Jinapor acknowledged the weight of unpaid bills to Independent Power Producers (IPPs) in addition to the difficulty of acquiring fuel.
In an attempt to prevent financial losses and boost energy sector efficiency, efforts are being made to renegotiate these debts and create a payment schedule.
“As for the debt, we are renegotiating with the IPPs, and having a payment plan with them so that we stop the bleeding, reduce the inefficiency, and turn the sector around,” Jinapor stated. “Our immediate challenge now is how to get liquid fuel to sustain the power.”
Though the Energy Minister warned that it won’t be enough to address the sector’s operational and financial challenges, the GH¢1.00 fuel levy is a part of larger government efforts to stabilize Ghana’s electricity supply.
Source: newsthemegh.com