The government has asked the Finance and Energy Ministers to remove some gasoline taxes and margins in order to reduce pump prices, with the relief expected to take effect during the next pricing window, which is around a week away.
Following weeks of hikes brought on by the ongoing US-Israel-Iran war, an emergency cabinet meeting was held on Thursday with the express purpose of evaluating the impact of rising global petroleum prices on Ghanaians.
Felix Kwakye Ofosu, the Minister of State in charge of Government Communications, told the media following the meeting that the cabinet had been keeping a careful eye on events and had come to the conclusion that action could no longer be postponed.
“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 on fuel, effective the next pricing window,” he stated.
He clarified that the conflict-related constraints in the Strait of Hormuz, a waterway that transports around 20% of the world’s crude oil, were directly responsible for the rises at the pump.
Over the past two pricing windows, Ghanaian consumers have been affected by these restrictions, which have raised the price of crude oil and significantly increased the cost of shipping insurance and other associated expenses.
However, the Cabinet pointed out that Ghana’s recent economic successes had lessened the impact.
Fuel prices in Ghana were still far lower than they were during a similar period in 2022, when the conflict in Ukraine began, thanks to the cedi’s appreciation and stability as well as inflation falling to about 3.2%.
However, the minister claimed that the recent rises had escalated to the point where action was necessary.
He cautioned that “if not checked, [the increases] could spill over into general price increments in transportation and other such commodities, which then can have an effect on the cost of living.”
Source: newsthemegh.com