Government has signaled that it may undertake a fuel tax review if rising global oil prices begin to place excessive pressure on consumers, as concerns grow over expected increases in pump prices from April 1, 2026.
Government Spokesperson Felix Kwakye Ofosu said authorities are closely monitoring developments on the international oil market, especially the impact of geopolitical tensions in the Middle East on crude prices and supply chains.
Speaking on the issue, he explained that fuel prices in Ghana are influenced by three major factors: international market prices, taxes and levies, and the exchange rate. While global oil prices remain largely outside the control of government, he noted that domestic tax components could be adjusted if necessary to protect consumers.
“If the world market price rises to a point where it imposes too much of a burden, government will have to keep the other components flexible to cushion the effect.” - Mr Kwakye Ofosu
Taxes and levies under consideration
His comments come at a time when petrol and diesel prices are expected to rise sharply at the pumps, raising fresh concerns about the cost of transport, food, and other essential goods.
Mr Kwakye Ofosu stressed that any move to revise taxes or levies would not be automatic, but would depend on how the current global situation evolves.
According to him, government is keeping “all considerations” on the table as it assesses the likely impact of prolonged external shocks on the local economy.
He emphasized that the possible intervention would be guided by the need to cushion consumers without undermining the country’s broader fiscal objectives.
Balancing consumer relief and fiscal stability
The prospect of a fuel tax review is likely to be welcomed by households and businesses already grappling with inflationary pressures and rising living costs.
Fuel price movements remain a key driver of transport fares and the prices of goods and services across the country, making the issue particularly sensitive for both consumers and policymakers.
“All considerations are on the table, but it will depend on developments,” Mr Kwakye Ofosu said, adding that any final decision would be based on what best balances consumer protection with the state’s revenue needs.
For now, government appears to be positioning itself for possible intervention should global oil market instability persist.
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