The Minister for Energy and Green Transition, John Abdulai Jinapor, has disclosed that government is engaging the Finance Ministry on a possible review of taxes on petroleum products, including the controversial one-cedi levy.
The move follows growing calls for the removal or reduction of fuel-related taxes to cushion consumers against rising pump prices, driven largely by escalating tensions in the Middle East and their impact on global crude oil markets.
Speaking at the launch of the Chamber of Oil Marketing Companies (COMAC) Safety Week celebration in Accra, Dr. Jinapor indicated that government is carefully assessing its options, with a primary focus on ensuring the steady availability of petroleum products.
“We have been working closely with the Finance Minister to examine all available options. Our immediate priority in the current situation is to ensure that petroleum products are available on the market. Once supply is stable, we can then address pricing concerns,” he stated.
He further noted that consultations are ongoing to determine which levies and taxes could be reviewed without destabilising the broader economy.
Dr. Jinapor assured that a final decision would be announced after the completion of stakeholder engagements and fiscal assessments. However, he cautioned that removing petroleum taxes could have significant trade-offs for other critical sectors.
“The reality is that when you remove taxes on petroleum products, other sectors such as roads, health, or education may have to forgo funding. We are conducting detailed simulations to ensure that any decision we take is balanced and sustainable,” he explained.
He emphasised the need for fiscal discipline, warning against short-term policy decisions that could have long-term negative consequences for the economy.
“We must avoid taking short-term economic decisions that may provide immediate relief but ultimately harm the ordinary Ghanaian in the long run. That is not prudent economic management,” he added.
The Minister also drew parallels with past economic challenges, recalling periods when rising fuel prices were exacerbated by sharp currency depreciation, leading to compounded cost pressures for consumers.
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