Economist and professor of finance at the University of Ghana, Godfred Bokpin, has backed the newly introduced GH¢1 levy on petroleum products, describing it as a necessary but temporary step to help stabilise Ghana's struggling energy sector.
Speaking on Joy FM's Super Morning Show, Prof.
Bokpin explained that while the levy may not be popular, it is a practical move given the country's current economic conditions and the ongoing reforms under the IMF-supported programme. "I think I have said it before that there are painful decisions ahead of us, especially in the energy sector," he said. "If you look at the 2025 budget and the strict expenditure cuts, and then again the many reforms under the IMF-supported programme, we face a considerable challenge navigating a path towards progressive spending without undermining the stability we are seeing right now." He noted that the recent appreciation of the cedi has allowed the government to introduce the levy without significantly affecting fuel prices. "Under the circumstance, I have a soft side towards this imposition, largely also because of the gains that have been conferred especially in the ex-pump pricing formula given the strengthening of the local currency.
So to that extent, we can make a case for this levy," he said.
