The Government of Ghana has announced plans to remove selected taxes and margins on fuel as part of efforts to reduce rising pump prices and cushion consumers from global shocks.
The move, described as a key intervention to stabilise the cost of living, was disclosed by the Minister of State for Government Communications, Felix Kwakye Ofosu, following a Cabinet meeting on April 9.
“These increases, if not checked, could spill over into transport fares and the prices of other goods and services,” he warned, highlighting the broader economic risks associated with sustained fuel price hikes.
Cabinet Directs Immediate Action
According to Mr Kwakye Ofosu, Cabinet has instructed the Ministers for Finance and Energy to act swiftly to bring down fuel prices by adjusting existing tax components.
“The first directive that Cabinet has issued is that the finance and energy ministers should take immediate steps to reduce the price of fuel through the removal of some taxes and margins on fuel.” - Mr Kwakye Ofosu
He adde. that the measure is expected to take effect in the next pricing window.
The intervention comes after consecutive increases in fuel prices over recent weeks, despite improvements in macroeconomic indicators such as currency stability and easing inflation.
Government attributed the rising fuel costs largely to geopolitical tensions involving the United States, Iran, and Israel, which have disrupted global oil supply chains.
Particular concern has been raised about restrictions along the Strait of Hormuz, a critical corridor for global crude oil shipments. These disruptions have led to higher crude prices, increased insurance premiums, and rising freight costs.
Cushioning Consumers Amid Economic Recovery
Despite the external pressures, Mr Kwakye Ofosu noted that Ghana’s improving economic outlook has helped moderate the full impact of global price shocks.
He pointed out that gains such as the appreciation of the cedi and declining inflation have provided some buffer, keeping fuel prices relatively lower compared to previous crises like the Russia-Ukraine war.
Still, the government says it remains committed to proactive measures to protect households and prevent further increases in the cost of living.
The planned tax adjustments, authorities believe, will provide immediate relief while broader efforts continue to strengthen economic resilience against global volatility.
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