The Deputy Ranking Member on Parliament’s Energy Committee and Member of Parliament for Afigya Kwabre North, Collins Adomako-Mensah, has welcomed the government’s latest intervention to ease rising fuel prices, describing it as a necessary step to reduce the burden on Ghanaians.

Speaking in an interview on Joy FM’s Middaynews on Wednesday, April 15, he noted that calls for the government to review taxes and levies on petroleum products had been ongoing for months, driven by concerns over the rising cost of living.

“Any attempt to lessen the burden of the Ghanaian people is welcome news,” he said. “We had indicated some months ago that the government needed to take immediate action by reducing some of the taxes and levies on petroleum products,” he said.

According to Mr Adomako-Mensah, pressure from well-meaning Ghanaians and industry stakeholders contributed to the decision, adding that the move aligns with earlier recommendations from policymakers and analysts.

However, he indicated that a more comprehensive assessment of the intervention would depend on clarity regarding the specific tax components affected.

“We are yet to get the full details as to which specific taxes and levies were affected. And I’m sure when we get those details, we could have a more informed discussion about it,” he stated.

On concerns about the sustainability of the intervention, estimated to cost the government about GH¢553 million over four weeks, Mr Adomako-Mensah pointed to potential gains from rising crude oil prices on the international market.

He explained that the government could offset the cost through unanticipated revenue from higher oil prices, noting that Ghana is also a crude oil exporter.

“If crude oil has now crossed the $100 mark, it also means that the government is going to make some significant windfall,” he said. “That windfall, which was not anticipated by the government, can be used to cushion the Ghanaian people.”

He further referenced projections in the national budget that benchmarked crude oil prices at $76.22 per barrel, suggesting that the current surge presents an opportunity to balance the budget.