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An economic consultant, Kwamena Essilfie Adjaye, says the reduction on fuel allocated to government institutions might not work.
Mr Adjaye said until there is a reduction in activities of government ministries, departments and agencies (MDAs), it will be difficult to ensure reduction in their fuel consumption.
Information Minister Mrs Zita Okaikoe announced at the weekend during a panel discussion on an Accra-based radio station that government would soon take measures to reduce public sector oil bill, including 30 percent reduction in allocation to government departments.
This follows government's announcement last Friday of 30% increase in fuel prices announced.
The economist criticised the National Petroleum Authority (NPA) for the huge increase.
While Mr. Adjaye believes the proposed changes are part of government’s efforts to put the economy on an even keel, he suggested that future increases must not be accumulated.
“We went for a period without adjustment. This is not advisable,” he stressed.
The economist said the citizenry has become used to "the local prices being related to the international prices" and would hardly protest if increases are done alongside hikes on the world market.
”It’s better to have more frequent change then any change may not be as say this 30%; the economic impact will not therefore be as great,” he emphasised.
The Mills-led administration made a campaign pledge to cut taxes substantially to reduce the cost of fuel.
Although the tax element has been yanked off, the government has already registered a 40% hike over the last four months.
Mr Adjaye said the margin of increase would negatively affect the economy.
Story by Fiifi Koomson/Joy News
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