The Government has announced a series of emergency measures to curb rising fuel prices following escalating geopolitical tensions involving the United States, Israel, and Iran.
At an emergency Cabinet meeting held on Thursday, officials reviewed the impact of the conflict particularly disruptions in the Strait of Hormuz on global crude oil prices and the knock-on effect on Ghana’s economy.
Addressing the press, Felix Kwakye Ofosu, Government Spokesperson and Minister for Communication, said the recent increases in fuel prices were “solely attributable to the conflict,” citing reduced oil shipments and rising insurance costs.
“About 20 percent of global crude oil passes through the Strait of Hormuz, and restrictions there have significantly driven up prices,” he explained.
Despite the external shocks, Cabinet noted that Ghana’s improved macroeconomic conditions including currency stability and lower inflation have helped cushion the impact compared to previous crises.
“In similar circumstances today, fuel prices remain significantly lower than what we experienced during the 2022 Ukraine conflict,” he said.
However, the government acknowledged that recent price hikes could trigger broader increases in transport fares and the cost of goods if left unchecked.
Key Measures Announced
To mitigate the impact, Cabinet has directed:
Immediate reduction in fuel prices through the removal of selected taxes and margins, effective in the next pricing window.
Deployment of Metro Mass buses, with 100 newly acquired buses to be rolled out on high-traffic routes to ease transportation costs.
Fare regulation, ensuring Metro Mass Transit services maintain lower fares than private operators to cushion commuters.
“These interventions are aimed at preventing a spillover into general price increases and protecting the cost of living,” Hon. Kwakye Ofosu noted.
Additional Directives
Cabinet also reinforced fiscal discipline measures, with the President reminding ministers and senior officials to strictly comply with the ban on fuel allowances and allocations.
The tax relief on fuel is expected to last for an initial four-week period, after which the situation will be reviewed.
“At the end of the period, we will assess developments and take further action if necessary,” he added.
Story: Patrick Asford Boadu
