Government has announced plans to remove some taxes and margins on fuel in a bid to reduce pump prices and cushion consumers against global shocks.
The announcement was made by the Minister of State for Government Communications, Felix Kwakye Ofosu, following a Cabinet meeting held on Thursday, April 9, to assess the impact of recent global developments on Ghana’s economy.
According to him, the decision comes in response to rising fuel prices driven largely by geopolitical tensions in the Middle East, particularly involving the United States, Iran, and Israel, which have disrupted global oil supply chains.
He explained that although Ghana’s recent economic gains—including the appreciation of the cedi and easing inflation—have helped cushion the impact, fuel prices have still increased over the past two pricing windows.
“These increases, if not checked, could spill over into transport fares and the prices of other goods and services, ultimately affecting the cost of living,” he stated.
Mr. Kwakye Ofosu revealed that Cabinet has directed the Ministers for Finance and Energy to take immediate action to reduce fuel prices by removing selected taxes and margins.
“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, effective the next pricing window, which is about a week from today,” he said.
He attributed the recent price hikes to disruptions in global oil supply, particularly along the Strait of Hormuz, a critical route for international crude oil shipments, which has led to higher crude prices, increased insurance premiums, and rising freight costs.
Despite these pressures, the Minister noted that Ghana’s current economic stability has helped keep fuel prices relatively lower compared to levels recorded during previous global crises, such as the Russia-Ukraine conflict.
Government, he added, remains committed to implementing measures that will ease the burden on households and prevent further increases in the cost of living.
