Mahama Administration Announces Fuel Tax Relief and Transport Measures Amid Global Price Volatility

10th April•3 min read•16 sources

In a decisive move to mitigate the impact of surging global crude oil prices, the government of President John Dramani Mahama has announced a series of immediate economic interventions, including the temporary abolition of selected petroleum taxes and levies. Government Communications Minister Felix Kwakye Ofosu confirmed that the decision followed an emergency Cabinet meeting held to address the rising cost of fuel caused by geopolitical tensions in the Middle East. Effective April 16, 2026, the relief package aims to stabilize transport fares and protect the purchasing power of Ghanaians against external economic shocks. Key measures include a four-week suspension of specific fuel taxes, the elimination of fuel allowances for government officials, and the fast-tracked deployment of hundreds of new buses, including 100 electric units for Metro Mass Transit Limited (MMT), to provide affordable transport options.

While the interventions have been welcomed by various sectors, they have also sparked intense political and industry debate. Eric Afful, Chairman of Parliament’s Committee on Economy and Development, endorsed the measures as a 'pro-poor' initiative essential for stabilizing the economy. However, the Minority in Parliament, led by Deputy Ranking Member Collins Adomako Mensah, has demanded immediate transparency regarding the proceeds of the GH¢1 fuel levy and the controversial 'dumsor levy.' The Minority insists that the government must provide a mandated report to Parliament on how these funds have been utilized before further changes are finalized. Similarly, Dr. Riverson Oppong, CEO of the Chamber of Oil Marketing Companies (COMAC), characterized the government's response as 'necessary but delayed,' calling for a full disclosure of revenue generated from energy-related levies to justify continued consumer burdens.

Opposition voices have further questioned the government's broader economic priorities. Minority Chief Whip Frank Annoh-Dompreh criticized the NDC administration for allegedly spending billions of dollars to stabilize the cedi while neglecting struggling cocoa farmers who face delayed payments and low producer prices. This tension escalated into a public discourse on sustainable agriculture after Annoh-Dompreh claimed cocoa was an 'infinite' resource compared to gold. Comedian and agriculture graduate DKB publicly challenged this assertion, pointing out that cocoa trees have a finite productivity span of 25 to 30 years, highlighting the threat that illegal mining (galamsey) poses to the industry. Additionally, NDC representatives such as David Vondee and Lawyer Theophilus Dzimega have defended the current measures by contrasting them with the 'Gold-for-Oil' program of the previous NPP administration, which they claim worsened fuel prices and failed to stabilize the cedi.

Looking ahead, some experts warn that these temporary tax suspensions may create long-term fiscal risks. Former Health Minister Dr. Bernard Okoe Boye cautioned that shielding consumers from price increases through tax cuts is a short-term fix that could exacerbate the national deficit, potentially leading to increased borrowing or future tax hikes. He urged the government to move toward more innovative, sustainable economic strategies and 'honest budgeting' to address the country's underlying financial instability. As the relief measures take effect, the focus remains on whether the government can balance immediate relief for citizens with the fiscal discipline required to navigate a volatile international oil market.

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Mahama Administration Announces Fuel Tax Relief and Transport Measures Amid Global Price Volatility

More from politics

Global Governance in Flux: From Military Accountability to Groundbreaking Shifts in Political Representation

Keta MP Demands Urgent Flood Relief While National Leaders Drive Infrastructure, Agricultural, and Social Reforms

President Mahama Champions National Resilience and Welfare Reforms for Senior Citizens

Ghanaian Leaders and Legal Experts Propose Sweeping Institutional Reforms to Strengthen Democracy and Public Accountability