Ghana To Scrap Fuel Taxes as Middle East Crisis Hits

The government of Ghana has said it will remove some fuel taxes and charges levied along the supply chain by distributors ​and retailers to cushion consumers from rising pump prices ‌driven by the Middle East conflict.

According to government spokesperson Felix Kwakye Ofosu, the measures are set to take effect within a week, al​though the specific levies to be scrapped will only ​be confirmed after consultations with stakeholder consultations.

With about 70% of its refined fuel ​coming from importation, Ghana is among many African nations hit by steep pump ​price increases as the U.S.-Israeli war on Iran sent global oil prices surging.

The National Petroleum Authority earlier raised mandatory minimum price floors for the April ​1–15 pricing window, pushing petrol prices up around 15 per cent ​to 13.30 cedis about $1.21 per litre and diesel up roughly 19 per cent ‌to ⁠17.10 cedis which is around $1.55.

Consultations between the government and stakeholders is expected to take place in the coming days ahead of the next pricing window in approximately one week.

“We are aware of the exact amount. It will be significant,” Kwakye ​said, adding ​that the suspension ⁠would last an initial four weeks, after which the government would review the situation.
He told ​reporters that the increases seen over the last ​pricing ⁠window were solely attributable to the Iran conflict.

The transport minister has separately been instructed to fast-track the deployment of newly acquired ⁠Metro ​Mass buses along high-traffic corridors, with ​fares set below those charged by private operators, to ease the burden on ​commuters.