A member of the New Patriotic Party (NPP) communication team, Awal Mohammed, has urged the government to put the recently announced electricity tariff increment on hold.
He called for action similar to the suspension of the controversial Dumsor Levy to ease the burden on Ghanaians.
Speaking on JoyNews’ AM Show today, Mr Mohammed expressed surprise at the decision of the Public Utilities Regulatory Commission (PURC) to increase electricity tariffs by 2.45%, effective 1st July 2025, as part of its quarterly review mechanism.
“Given the current economic indicators, such as inflation trending downward and a stabilising exchange rate, this increase is both untimely and insensitive,” he said. “The government must take decisive steps to halt this levy, just as it did with the Dumsor Levy.”
The PURC justified the hike based on inflation at 20.67%, an exchange rate of GHS10.3052 to the US dollar, and an increased weighted average cost of gas.
However, Mr Mohammed argued that these figures no longer reflect the current economic reality.
“When the last tariff hike was introduced, inflation was about 21%, and the cedi was trading above 11 to the dollar. Now, inflation has dropped to around 18%, and the cedi is more stable. It is unreasonable to impose another increase under these conditions,” he said.
He also challenged assertions that the tariff increase is due to International Monetary Fund (IMF) conditions, noting that tariffs were reduced while Ghana was still under an IMF programme last year.
“Last year, there was a 3% reduction in tariffs despite IMF involvement. The suggestion that this hike is IMF-driven doesn’t hold.”
Mr Mohammed stressed the importance of affordable electricity in supporting the government’s 24-hour economy agenda.
“The government promised that the 24-hour economy would be supported by reduced electricity tariffs to help welders, manufacturers, and small businesses. This hike contradicts that promise and places additional strain on citizens.”
He called on the government to reconsider the tariff increase and suspend it until a thorough review of the economic factors is completed.
“Suspending the levy would provide relief and allow time to assess the economy before making further adjustments.”
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DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.
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