The government has directed the Finance and Energy Ministers to remove some taxes and margins on fuel to bring down prices at the pump, with the relief expected to take effect at the next pricing window, approximately one week away.
The decision to remove some taxes and margins on fuel to reduce pump prices will run for an initial four weeks, after which the situation will be reassessed.
The time-bound nature of the measure was disclosed on Thursday by the Minister of State in charge of Government Communications, Felix Kwakye Ofosu, following an emergency cabinet session called to address the impact of rising fuel prices on Ghanaians.
“The reduction or removal of some taxes and margins, which should lead to a reduction in fuel prices effective the next pricing window, is supposed to last for an initial period of four weeks.
“After the four weeks, the situation will be reviewed and as and when it is deemed necessary, appropriate actions will be taken,” he said.
The relief is expected to take effect at the next pricing window, approximately one week from Thursday.
Cabinet tied the recent pump price increases directly to the ongoing US-Israel-Iran conflict, which has disrupted oil flows through the Strait of Hormuz, a waterway carrying roughly 20 percent of the world’s crude oil.
The disruption has pushed up crude oil prices globally and sent shipping insurance premiums sharply higher, with those costs flowing through to consumers at the pump over the last two pricing windows.
The minister was at pains to note, however, that Ghana’s economic position had meaningfully reduced the country’s exposure.
The cedi’s stability and appreciation, combined with inflation falling to around 3.2 percent, meant pump prices were considerably lower than what Ghanaians faced during a comparable shock in 2022 when the Ukraine conflict erupted.
Despite that cushion, cabinet concluded that without intervention the increases risked spilling over into transport fares and broader commodity prices, with consequences for the cost of living.
Richard Aniagyei, ISD
