Govt moves to suspend fuel taxes to reduce pump prices

The Ministries of Energy and Finance have begun high-level consultations to suspend selected fuel taxes and margins as part of efforts to ease the burden of rising fuel costs on Ghanaians.

The discussions, led by the Minister for Energy and Green Transition, John Jinapor, in collaboration with the Ministry of Finance, brought together key stakeholders within the downstream petroleum sector.

The move follows a directive from Cabinet to introduce measures that will deliver immediate relief at the pumps in the next fuel pricing window.

Under the proposal, the temporary suspension of certain taxes and margins is expected to directly reduce ex-pump fuel prices, offering much-needed respite to consumers facing increasing living costs.

Industry players—including bulk importers, oil marketing companies and regulators—are contributing to the development of a framework to guide the intervention.

Announcing the decision at a post-Cabinet press briefing, the Minister of State in charge of Government Communications, Felix Kwakye Ofosu, indicated that the measures will be implemented for an initial four-week period, after which they will be reviewed based on prevailing conditions.

As part of broader interventions, the Minister for Transport has also been directed to fast-track the rollout of about 100 Metro Mass Transit buses, with fares expected to be reduced to provide more affordable transport options for commuters.

Additionally, President John Dramani Mahama has reminded ministers and senior government appointees to strictly comply with the existing ban on fuel allowances as part of efforts to cut public expenditure.

The recent surge in fuel prices has been largely attributed to disruptions in global oil supply, particularly following the closure of the Strait of Hormuz, a critical international shipping corridor.

The planned measures form part of a broader government response aimed at cushioning households and businesses against the impact of rising fuel prices.