President Mahama Energy levy was to help pay VRA's debts

Fuel prices at the pumps went up by between 22 percent and 27 percent, following the passage of the energy sector levy by parliament in December 2015.

  • Published: , Refreshed:
24/7 Live - Subscribe to the Pulse Newsletter!

President John Mahama has said the energy sector levy was introduced to help the Volta River Authority (VRA) pay off its legacy debts.

Parliament last year passed the energy sector levy which saw an astronomical increases in taxes and subsequently affected prices of petroleum products.

Fuel prices at the pumps went up by between 22 percent and 27 percent, following the passage of the energy sector levy by parliament in December 2015.

The price of LPG also went up by about 18 percent.

However, in a recent TV interview, president Mahama said the levy was to also clean VRA's debts and help it sustain the power they are generating.

“Naturally, VRA itself has a lot of legacy debts the debts of VRA and the power utilities have accumulated over the years and that’s why one of the solutions to the energy crisis was not only putting in enough power generations, he told TV3.

"But also to do something about the VRA’s debt hence introducing the energy sector levies to help them pay off those legacy debts, clean their balance sheets so that they are better able to sustain the power that they are generating,” he said.

President Mahama in his State of the Nation address described the decision as tough but necessary.

Do you ever witness news or have a story that should be featured on Pulse Ghana?
Submit your stories, pictures and videos to us now via WhatsApp: +233507713497, Social Media @pulseghana: #PulseEyewitness & DM or Email:

Recommended Articles

Recommended Videos

Top Articles

1 Royal Wedding Here's how the cost of Meghan's wedding compares to Katebullet
2 Nana Appiah Mensah Menzgold boss dares BoG to prove deposit allegationsbullet
3 Menzgold Ghana Don't deposit money with Menzgold – BoG cautions...bullet
4 Gas Retailers Strike Here is a list of places to buy gas as other...bullet
5 Microfinance Akufo-Addo speaks on DKM microfinance scandalbullet
6 Petroleum Operators Strike Be calm; there’s no gas shortage –...bullet
7 NaBCo Here's what you need to apply for the Nation Builders...bullet
8 $89m Kelni GVG Deal Nana Addo must order Ursula Owusu to...bullet
9 Menzgold Ghana Investment company closes down its Gold...bullet
10 Fiscal Policy Ghana's total debt hits $145 billionbullet

Top Videos

1 Forbes 2018 Africa's billionaires rich listbullet
2 Dr Joseph Siaw Agyepong Nobody can collapse my company – JOSPONGbullet
3 Money Alert Meet Africa's richest womanbullet
4 New Discovery Ghana discovers new mineral, lithium in commercial...bullet
5 Tech 6 reasons you should buy an iPhone SE instead of any of the...bullet
6 Plane Crash Starbow suspends operations following plane crashbullet
7 Support Finance minister buys Kantanka carbullet
8 Bozoma Saint John 10 quotes from Uber top official,...bullet
9 New Phone Nokia’s MWC 2018 Event in Under 10 Minutesbullet
10 Entrepreneurship How to be resourceful as an entrepreneurbullet