The debate over rising utility tariffs has intensified in Ghana’s Parliament, taking on a sharper political tone as Kojo Oppong Nkrumah, MP for Ofoase-Ayirebi and Ranking Member on the Economy Committee, criticized the Mahama-led NDC administration for what he called a legacy of broken promises and increased economic hardship for citizens.
During a parliamentary session, Oppong Nkrumah took aim at the government’s recent decision to raise gas prices and introduce quarterly adjustments to utility tariffs—moves he argues contradict earlier commitments to reduce the cost of living.
“You promised to use the special petroleum levy to cushion fuel consumers against price hikes,” he said. “But from the State of the Nation Address to the budget and economic policy statements, that promise has quietly disappeared.”
He highlighted a recent increase in the price of gas used for electricity generation, from $7 to $8 per MMBtu, warning that this will inevitably raise electricity costs across the country.
“Raising the cost of gas means the cost of power production goes up. That’s basic,” he stressed.
Oppong Nkrumah also criticized the introduction of regular quarterly tariff reviews, calling it a betrayal of the so-called “reset agenda” the government promoted ahead of the 2024 elections.
“Every three months, utility tariffs will go up. Is this the reset you promised the people of Ghana?” he questioned.
His remarks came in response to the 2025 Budget Statement delivered on March 11 by Finance Minister Dr. Cassiel Ato Forson. In his presentation, Dr. Forson outlined reforms in the energy sector aligned with Ghana’s ongoing programme with the International Monetary Fund (IMF).
Dr. Forson confirmed that the Public Utilities Regulatory Commission (PURC) will maintain the Quarterly Tariff Adjustment system to reflect changes in inflation, exchange rates, and the energy generation mix.
“As agreed with the IMF by the previous administration, we will implement these Energy Sector Recovery Programme (ESRP) measures,” he said. “PURC will continue with quarterly tariff reviews in line with economic indicators.”
He also announced that a major tariff revision is scheduled for the fourth quarter of 2025, which will factor in rising capacity charges, increased use of liquid fuels, and capital expenditures.
Additionally, the Finance Minister revealed an increase in the Weighted Average Cost of Gas—from $7.836 to $8.45 per MMBtu—due to global price hikes and shifts in supply.
Further cost-cutting measures include reversing subsidies for certain ceramic companies previously supported under the Discounted Development Tariff.
“These subsidies will be withdrawn,” Forson confirmed.
While the Finance Ministry insists these steps are necessary for long-term energy sector stability, Oppong Nkrumah contends they shift the burden of reform onto everyday Ghanaians—despite prior promises of affordability and relief.
