Former President John Dramani Mahama has announced a commitment to regularly audit funds generated from the newly introduced GH₵1 fuel levy and ensure that audit reports are made publicly available. This move aims to bolster transparency and accountability in the management of the funds, which are earmarked to address the energy sector's financial challenges.
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Background of the GH₵1 Fuel Levy
In June 2025, President Mahama introduced the GH₵1 fuel levy as part of the Energy Sector (Amendment) Bill, 2025. The levy is projected to generate approximately GH₵5.7 billion annually. These funds are designated to service over US$3.1 billion in legacy energy sector debts and to finance ongoing fuel procurement to prevent power shortages. The President emphasized that the funds would be ring-fenced, meaning they would be used exclusively for these purposes and would not be diverted into the Consolidated Fund .
Commitment to Transparency
Addressing concerns about the potential misuse of the levy, President Mahama assured the public that the funds would undergo regular audits. He emphasized that these audits would be conducted independently and the reports would be made accessible to the public. This initiative is part of a broader strategy to rebuild trust in government financial management, particularly in light of previous controversies surrounding the Energy Sector Levies Act (ESLA) funds .
Historical Context and Public Concerns
The introduction of the GH₵1 fuel levy comes amid public scrutiny over the management of energy sector funds. In March 2024, the Minority in Parliament called for a comprehensive audit of GH₵10 billion accrued from the ESLA, alleging mismanagement and contributing to the energy sector's financial woes . Additionally, a report from the Africa Centre for Energy Policy (ACEP) highlighted concerns over the increasing fuel-related levies and margins, which have led to higher fuel prices for consumers .
Implications for Governance
The commitment to regular audits and public reporting represents a significant step towards enhancing fiscal discipline and public sector accountability. It aligns with President Mahama's broader agenda to reintroduce a sinking fund to address the nation's rising debt, utilizing revenues from the petroleum sector . By ensuring that the GH₵1 fuel levy is managed transparently, the government aims to mitigate public concerns and demonstrate a commitment to responsible financial stewardship.
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Conclusion
President Mahama's pledge to audit and publicly report on the GH₵1 fuel levy funds is a proactive measure to foster transparency and accountability in the management of resources designated for the energy sector. While the success of this initiative will depend on the effective implementation of audit processes and the government's responsiveness to public feedback, it marks a positive development in addressing the financial challenges facing Ghana's energy sector.
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