Mahama directs reduction in fuel prices

President John Dramani Mahama has directed the Finance and Energy Ministers to immediately reduce fuel prices through the removal of selected taxes and margins, effective at the next pricing window — approximately one week away , following an emergency cabinet meeting held at the Jubilee House.

The directive, announced by the government spokesperson after the high level cabinet session chaired by President Mahama, represents the administration’s most concrete response yet to a fuel price surge that has seen pump prices climb roughly 30 percent since January.

A TEMPORARY MEASURE TIED TO THE MIDDLE EAST

The government was explicit that the tax and margin reductions are not permanent. The measures will last an initial period of four weeks from the next pricing window, after which cabinet will review the situation and determine whether further action is warranted.

The spokesperson linked the timeline directly to the ongoing conflict in the Middle East, noting that restrictions along the Strait of Hormuz — through which approximately 20 percent of global crude oil parcels pass — have significantly reduced supply volumes, driven up crude prices, and pushed insurance premiums sharply higher. These pressures, the spokesperson said, account for the increases recorded across the last two fuel pricing windows despite what officials described as an otherwise stable domestic economic environment.

“We are aware of the ceasefire,” the spokesperson said, “but we all know that we need to monitor the situation quite a bit before one can place any measure of confidence and certainty in the outcome.” The four week window is intended to give the government time to assess whether the ceasefire holds and whether crude oil prices respond accordingly.

SPECIFIC TAXES TO BE ANNOUNCED AFTER STAKEHOLDER ENGAGEMENT

Cabinet identified specific taxes and margins for removal but declined to announce them immediately. The Finance and Energy Ministers have been tasked with engaging relevant industry stakeholders over the coming days before a public announcement is made, to ensure the sector is not caught off guard by the changes.

The spokesperson confirmed that the government knows the exact margins and taxes to be removed and the precise cost to the fiscus, describing the figure only as “significant.” A definitive announcement will accompany the next pricing window.

METROMASS BUSES TO CUSHION TRANSPORT COSTS

Beyond fuel pricing, the Transport Minister has been instructed to expedite the deployment of 100 newly arrived Metromass buses into high traffic corridors across the country. The buses, whose arrival was announced over the preceding weekend, are part of a broader fleet acquisition of 300 units. A further 100 are expected in August and the final batch of 100 in November.

Cabinet directed that the Metromass buses, both the new arrivals and existing fleet, maintain fares below those charged by private sector competitors. The measure is designed to give commuters a lower cost alternative during what the government anticipates could be a period of peak transport demand pressure.

MINISTERS REMINDED OF FUEL ALLOWANCE BAN

President Mahama used the cabinet session to reinforce an existing directive banning fuel allowances and fuel allocations for ministers and senior government officials and appointees. The reminder signals that the administration is conscious of the optics of public sector fuel consumption at a moment when it is asking ordinary Ghanaians to absorb higher pump prices.

The government said it is also mindful of the risks of repeating past missteps in the energy sector, with the spokesperson stressing that the measures being taken are designed to reduce prices without compromising the financial stability of the energy sector.

A formal announcement of the specific taxes and the quantum of fiscal relief is expected before the next pricing window opens.

 

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