Gov’t to cut fuel taxes, deploy buses to ease impact of global oil price surge — Felix Kwakye Ofosu
Government has announced immediate measures to cushion Ghanaians against rising fuel prices triggered by escalating geopolitical tensions in the Middle East.
Speaking after an emergency cabinet meeting, the Spokesperson to the President and Minister for Government Communications, Hon. Felix Kwakye Ofosu, said the recent US-Israeli-Iranian conflict has significantly disrupted global oil supply chains, leading to increases in crude oil prices and fuel costs.
“A couple of days now, it has been advertised that an emergency cabinet session was going to be held today to discuss the effects of the recent significant geopolitical developments… and its impact on fuel prices,” he stated.
According to him, restrictions along the Strait of Hormuz—through which about 20 percent of global crude oil passes—have reduced supply volumes and driven up shipping and insurance costs.
“This has led to an increase in crude oil prices… and that is what has accounted for the increases we’ve seen in the last two pricing windows,” he explained.
Hon. Kwakye Ofosu noted that despite the global shocks, Ghana’s economy has shown resilience due to recent gains, including a stable cedi and declining inflation.
“Cabinet noted the major economic gains that have been made… including the significant appreciation of the Ghana cedi and the lowering of inflation to around 3.2 percent. These gains have in themselves served to mitigate the impact,” he said.
He added that fuel prices, although rising, remain comparatively lower than levels recorded during the 2022 Russia-Ukraine conflict.
However, he cautioned that continued increases could have broader implications on the cost of living.
“If not checked, [the increases] could spill over into general price increments in transportation and other commodities,” he warned.
To address the situation, Hon. Kwakye Ofosu announced that cabinet has directed the Ministers for Finance and Energy to act swiftly.
“Cabinet has decided 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,” he said.
He indicated that the intervention will take effect within a week and will be implemented for an initial period of four weeks, subject to review.
In addition, the Transport Ministry has been instructed to fast-track the deployment of 100 newly acquired Metro Mass Transit buses to ease commuting pressures.
“The transport minister has been instructed… to ensure expedited deployment of these buses in high traffic corridors,” he stated.
He further emphasized that fares on the buses must remain affordable.
“The minister has also been charged with ensuring that these metro mass buses… maintain transport fares which are lower than what private sector operators charge,” he added.
Hon. Kwakye Ofosu also revealed that the President used the meeting to reinforce fiscal discipline among government officials.
“The President took the opportunity… to remind all ministers and senior government officials to adhere strictly to his ban on fuel allowances and allocation of fuel,” he said.
