The Chamber of Petroleum Consumers-Ghana has welcomed the government’s decision to immediately scrap all fuel allowances for political appointees, describing the move as “commendable and forward-thinking,” while emphasising that further measures are needed.

In a statement signed by the Executive Secretary, Duncan Amoah, the group noted that fuel allowances have, over the years, been enjoyed by virtually all Article 71 office holders, presidential appointees, and other public officers to ease their mobility.

This was in addition to the provision of ultra-new vehicles, fully serviced and fueled at the expense of the state.

“Recent checks indicate averages of about 833 litres or 185 gallons per appointee per month,” the statement said. “These figures are staggering, though some appointees do receive way more than these average figures.” The data, the group explained, highlights the considerable expenditure the state incurs on public office holders, including vehicle provision and maintenance.

While acknowledging that appointees should be supported to reduce corruption risks, the group stressed that “the excesses of office ought to be curtailed,” and for this reason, it views the President’s directive as “completely laudable and commendable.”

However, the group demanded that “all other public office holders’ emoluments and gratuities be reviewed going forward to reflect the current economic status of the country as the government seeks to advance austerity in public spending.”

The group urged that the funds saved from the scrapped fuel allowances “be put into an account and the proceeds of same, be used for specific public projects that will benefit both current and future generations to serve as a testament of the current government’s prudent management and utilisation of public resources.”

Looking ahead, the group encouraged the government “to consider the adoption and assembly of electric or solar-powered vehicles for public office holders going forward as has been proposed by the Minister of Energy and Green Transitions.”

They emphasised that “the departure from high-consuming Land Cruisers and other vehicles will go a long way in eliminating the need to, at any point in time, restore the now scrapped fuel allowances by the current government.”

The group called on the government “to audit the petroleum price build up as some taxes on the current price build up have outlived their purposes and should be removed to give respite in the face of the imminent introduction of the new one Ghana Cedi per litre levy, which is set to come into effect on July 16.”

Background

President John Dramani Mahama has, with immediate effect, cancelled the payment and allocation of fuel allowances to all political appointees as part of his administration’s ongoing efforts to reduce public expenditure.

The announcement was made today, July 15, in an official statement from the presidency signed by the Minister for Government Communications, Felix Kwakye Ofosu.

According to the release, the directive aims to curb government spending and redirect funds into key priority sectors. “The President believes that leadership must also bear its part of the sacrifices it is calling on the people to make,” the statement noted, highlighting the administration’s commitment to leading by example amid current economic pressures.

This move is the latest in a series of austerity measures introduced by the Mahama government. Recent steps include a significant reduction in the size of government through fewer ministerial and presidential staff appointments, and the cancellation of satellite TV subscriptions for offices at the Presidency and other state institutions.

This decision comes barely 24-hours before the implementation of the GHS1.00 levy expected to be charged on every litre of fuel purchased at the pump.

The government has explained that the primary aim of the levy is to provide the Ministry of Energy with sufficient funds to procure fuel for power generation.