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The government of Ghana has unveiled plans to remove certain taxes and margins on fuel to alleviate the impact of rising pump prices and protect consumers from external shocks.
Felix Kwakye Ofosu, the Minister of State for Government Communications, shared the news following a Cabinet meeting on Thursday, April 9, where global economic developments were discussed in relation to Ghana’s economy.
Ofosu explained that the decision comes after a series of fuel price hikes, primarily driven by geopolitical tensions in the Middle East—specifically the conflict between the United States, Iran, and Israel—that have disrupted global oil supply chains.
While he acknowledged that recent economic improvements, such as the strengthening of the cedi and a reduction in inflation, have provided some relief, fuel prices have continued to rise over the last two pricing windows.
“If these increases are left unchecked, they could result in higher transport fares and an overall increase in the prices of goods and services, further straining the cost of living,” he warned.
The Cabinet has thus directed the Finance and Energy Ministers to take immediate action to reduce fuel prices by removing certain taxes and margins. This change is set to take effect during the next pricing window, which is about a week away.
Ofosu highlighted that disruptions in the global oil supply—especially in the Strait of Hormuz, a key route for crude oil transportation—have led to increased crude oil prices, higher insurance premiums, and rising freight costs.
Despite these challenges, he assured that Ghana’s current economic stability has helped keep fuel prices lower than in previous global crises, such as the Russia-Ukraine war.
The government remains focused on implementing meas⁵fures to ease the burden on households and prevent further increases in the cost of living.
Story by Efua Nessa
Source: loco tv