Prez Mahama orders emergency fuel tax cuts, cheaper transport amid global oil crisis

President John Dramani Mahama has directed immediate interventions to cushion Ghanaians from rising fuel prices as escalating tensions in the Middle East disrupt global oil supplies.

The directive followed an emergency Cabinet meeting in Accra on Thursday, convened shortly after the President returned from an official visit to France. The meeting focused on urgent measures to ease pressure on households and businesses following sharp increases in petrol and diesel prices.

Tax Suspension, Price Relief Coming

At the heart of the government’s response is a plan to review and temporarily suspend selected taxes and levies on petroleum products. Finance Minister Cassiel Ato Forson and Energy Minister John Jinapor have been tasked to engage industry players and implement measures aimed at reducing pump prices in the next pricing window.

Officials say the relief package will run for an initial four-week period, after which it will be reassessed based on developments in global oil markets — particularly the ongoing instability involving Iran, Israel and the United States.

The price spike has been linked to disruptions along the Strait of Hormuz, a vital corridor for global crude oil shipments. The situation has tightened supply and triggered one of the steepest fuel price increases in Ghana in recent months.

100 Buses to Ease Transport Costs

As part of broader mitigation efforts, the President has directed the Transport Ministry to fast-track the deployment of 100 Metro Mass Transit buses on busy routes. The buses are expected to offer lower fares than private operators, providing relief to commuters grappling with rising transport costs.

Spending Cuts for Officials

In a further move to curb public expenditure, President Mahama instructed all ministers and senior government officials to strictly comply with an existing ban on fuel allowances, reinforcing efforts to cut spending during the current economic strain.

Officials describe the measures as a coordinated national response to stabilise fuel prices and limit knock-on effects on inflation, particularly in the transport and food sectors.

President Confident in Economic Resilience

Despite the uncertainty, the President expressed confidence in the resilience of the economy, assuring that Ghana would withstand the external shocks driven by the geopolitical crisis.