Ghana’s Energy Sector Shortfall and Debt Repayment Levy has received approval from the International Monetary Fund (IMF), which describes it as a strategic measure in line with the nation’s budgetary objectives under the Extended Credit Facility (ECF) program.
The levy, which charges petroleum products GH¢1 per litre, is intended to alleviate the energy sector’s long-standing debt and financial deficiencies.
Julie Kozack, Director of the IMF’s Communications Department, stated during a press briefing that the revenue measure will be essential in assisting Ghana in addressing structural problems in the sector and promoting more extensive fiscal reforms.
“On the fuel levy, what I can say is that this is a new measure that will help generate additional resources to tackle the challenges in Ghana’s energy sector, and it is also going to bolster Ghana’s ability to deliver on the fiscal objectives under the programme,” she said.
The Minority in Parliament has criticized the charge, claiming it increases the financial strain on people who are already struggling.
The administration, however, maintains that the effect on consumers would be minimal, citing the fact that gas costs are already lower than they were during earlier periods of severe inflation.
The Minority in Parliament has criticized the charge, claiming it increases the financial strain on people who are already struggling.
The administration, however, maintains that the effect on consumers would be minimal, citing the fact that gas costs are already lower than they were during earlier periods of severe inflation.
Source: newsthemegh.com