Gov’t can ease fuel burden without disrupting budget – Prof Bokpin

Economist Godfred Bokpin has stated that the government can reduce or remove certain petroleum levies to ease the burden on consumers without undermining the national budget.

Speaking on Joy FM’s Midday News, the Professor of Finance and Economics at the University of Ghana explained that national budgets are built on assumptions that may not hold throughout the year, allowing room for policy adjustments when economic conditions change.

“When a budget is approved, it is based on certain assumptions, but these may not remain valid for the entire implementation period. Government must therefore have the flexibility to respond to new developments,” he said.

Prof. Bokpin made the remarks while addressing concerns about how the government could compensate for potential revenue losses if fuel levies are reduced or scrapped after the budget has already been set.

He emphasised that such flexibility is especially important in the current global environment, where fuel prices are influenced by external shocks, including geopolitical tensions and the ongoing Russia-Ukraine conflict, which continue to impact domestic fuel costs.

His comments come amid increasing pressure from groups such as the African Centre for Energy Policy (ACEP) and the Ghana Private Road Transport Union (GPRTU), both of which are calling on government to review petroleum taxes to help cushion consumers against rising fuel prices.