President John Agyekum Kufuor on Thursday night announced what he said are measures to cushion Ghanaians against rising cost of living, blaming the harsh conditions primarily on the increasing crude oil price on the world market.He said Ghana’s crude oil import bill for the past two years alone, and given the trend on the global front now, is throwing the national budget out of gear.The Minister of Finance and Economic Planning is to secure parliamentary backing as soon as possible to bring into effect, the various measures.Among the interventions announced by the President, is the removal of import duties on rice, wheat, yellow corn and vegetable oil, and while importers will be required to reduce prices accordingly, it would constitute a criminal offence for anyone to attempt to re-export the items, now tax-exempt purposely for the benefit of the local market.The excise duty and debt recovery levy on premix oil are also removed to assist the fishing communities, while the excise duty and debt recovery levy on gas oil, kerosene, and marine gas oil are to be reduced and dealers in the products and transporters are to reduce their prices and fairs to the benefit of consumers and passengers.The Government has also decided to increase its support for the production cost of electricity to bring relief to domestic consumers, while government is to subsidize the cost of fertilizers as well as ensure the effective distribution of fertilizers to farmers to encourage good harvests.(Listen to the President's full address in the attached audio.)Highlights

• Nation’s crude oil import bill rose from $500 million dollars in 2005 to $2.1 billion in 2007. Currently moving to $2.5 billion.
• The 2008 budget was prepared on an estimated crude oil price of $85 per barrel.
• Within first quarter of 2008 crude oil price rose to $125 per barrel and currently standing at $135 per barrel. Experts predict a rise to $200 before the end of the year.
• Import duties on rice, wheat, yellow corn and vegetable oil removed.
• Excise duty and debt recovery levy on premix oil removed.
• Excise duty and debt recovery levy on gas oil, kerosene and marine gas oil reduced.
• Government will increase support for the production cost of electricity.
• Management of Aforestation Programme to increase planting of foodstuffs.
• Agriculture Ministry directed to step up supply of tractors at subsidised rates to farmers to boost food production.
• Millennium Development Authority directed to accelerate pace of implementation of Millennium Development Challenge Account Programmes in all selected districts.

Authors: Isaac Yeboah/Fiifi Koomson