The National Coordinator of the District Road Improvement Programme (DRIP), Nii Lantey Vanderpuye, has strongly defended the new GH¢1 levy on petroleum products, describing it as the more manageable option compared to a potential 50% increase in electricity tariffs.

In an intervie on Thursday, June 5, Vanderpuye explained that the levy is a crucial measure aimed at tackling the country’s energy sector challenges without imposing excessive financial burdens on Ghanaians through higher utility bills.

“This levy is meant to resolve a problem that we have created ourselves, because if we do not do that, realistically, what we are saying is that we must pay 50% more for electricity,” he said.

“You would want to pay 50% more for electricity, or you would contribute to the 1 cedi, or, cumulatively, we can resolve the problem instead of shifting into the pricing of electricity.”

He stressed that the choice came down to two tough decisions—taxes or higher tariffs—and government opted for the one it believes will cause less hardship for households and businesses.

“It is either tariffs or taxes. So we thought that there is a need for us to have this tax to generate revenue to meet the demands, so that we do not increase the tariff.”

The GH¢1 Energy Sector Recovery Levy was passed under a certificate of urgency in Parliament earlier this week, stirring debates across the country.

While critics, including former Vice President Dr. Mahamudu Bawumia, have slammed the move as a betrayal of public trust, Vanderpuye believes it’s a fair trade-off to stabilize the power sector without plunging Ghanaians into deeper financial strain.