PRESIDENT MAHAMA ORDERS TEMPORARY FUEL PRICE CUTS AS GOVERNMENT MOVES TO EASE PRESSURE ON GHANAIANS

PRESIDENT MAHAMA ORDERS TEMPORARY FUEL PRICE CUTS AS GOVERNMENT MOVES TO EASE PRESSURE ON GHANAIANS

President John Dramani Mahama has directed the Ministers for Finance and Energy to implement immediate measures to reduce fuel prices by removing selected taxes and margins, with the changes expected to take effect in the next pricing window.

The directive followed an emergency Cabinet meeting held at the Jubilee House, as government responds to a sharp rise in fuel prices, which have increased by about 30 percent since the beginning of the year.

Temporary intervention linked to global tensions

Government officials clarified that the reduction in taxes and margins is a temporary measure, expected to last for an initial period of four weeks. The decision is tied to ongoing geopolitical tensions in the Middle East, particularly disruptions along the Strait of Hormuz, a key global oil route.

According to the government, reduced supply volumes and rising insurance costs have contributed significantly to recent fuel price hikes, despite relatively stable domestic economic conditions.

Authorities say the four-week window will allow time to assess whether a ceasefire in the region will hold and if global crude oil prices will stabilise.

Details of tax cuts pending

Although Cabinet has identified the specific taxes and margins to be removed, officials say these will be announced after consultations with industry stakeholders. The Finance and Energy Ministers have been tasked to engage key players in the sector before a final announcement is made.

Government sources indicate that the fiscal impact of the intervention will be substantial, though exact figures are yet to be disclosed.

Metromass buses to ease transport burden

In a related move, the Transport Minister has been directed to fast-track the deployment of 100 new buses under the Metro Mass Transit system to major high-traffic routes.

The buses form part of a broader acquisition plan of 300 units, with additional batches expected later in the year. Cabinet has also instructed that fares on these buses remain lower than those charged by private operators to provide relief for commuters.

Reinforcement of fuel allowance ban

President Mahama also reiterated a directive banning fuel allowances and allocations for ministers and senior government officials, highlighting the need for leadership to demonstrate restraint amid rising fuel costs.

The government emphasised that the measures are carefully designed to bring relief to consumers without undermining the financial stability of the energy sector.

A formal announcement detailing the exact tax reductions and expected price adjustments is anticipated ahead of the next fuel pricing window.

Credit: The Chronicle