Fuel prices are set to see a reduction this week as the government takes steps to cushion consumers against the rising prices.
Prices at the pumps have seen significant increases in the last two windows as global crude prices soar in the wake of the US-Israel-Iran war.
At a Cabinet meeting last Thursday, President John Dramani Mahama directed the ministers of finance and energy and green transition to remove some of the taxes and margins on the petroleum price build-up.
“So the first directive that Cabinet has issued is 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, and this is supposed to be done as soon as possible,” the Minister for Government Communications, Felix Kwakye Ofosu, told a news conference after the Cabinet meeting.
He explained that the expected reduction would last for an initial period of four weeks.
“After the four weeks, the situation will be reviewed,” he indicated.
Cabinet, Mr Kwakye, MP, Abura Asebu Kwamankese, said, has also directed the deployment of buses to augment the private sector players to avoid driver rent-seeking.
“Secondly, the transport minister has also been instructed to ensure the expedited deployment of newly acquired Metro Mass buses in high traffic corridors to ensure that it alleviates any difficulties that may have arisen out of the recent price increases. The transport minister has also been charged with ensuring that these Metro Mass buses, in addition to the existing ones, charge or maintain transport fares, which are lower than what private sector operators charge. This is to ensure that Ghanaians are cushioned, especially when we reach peak periods at the rush hour,” he added.
Mr Kwakye said the first batch of 100 buses have arrived with another 100 expected in August and a final 100 in November.
He said President Mahama reminded all ministers and senior government officials and appointees to adhere strictly to his ban on fuel allowances and allocation of fuel for such category of workers.
“And this applies to all ministers and senior government officials,” he stated.
The reduction in fuel prices has become necessary as global crude prices continue to rise following the closure of the Strait of Hormuz, the marine route which is used in transporting about 20 per cent of crude oil globally.
That has impacted local prices as it increased from an average GH¢10 a litre to about GH¢14.
Mr Kwakye explained that the decision was a deliberate one to protect citizens from the harsh prices and maintain the economic gains made over the last year.
BY JULIUS YAO PETETSI
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