Government has announced plans to remove some taxes and margins on fuel in a bid to ease rising pump prices and cushion consumers against external shocks.

The Minister of State for Government Communications, Felix Kwakye Ofosu, disclosed this after a Cabinet meeting held on Thursday, April 9, to assess the impact of global developments on Ghana’s economy.

According to him, the decision follows recent increases in fuel prices driven largely by geopolitical tensions in the Middle East, particularly the conflict involving the United States, Iran, and Israel, which has disrupted global oil supply chains.

He explained that although Ghana’s recent economic gains, including the appreciation of the cedi and easing inflation, have helped cushion the impact, fuel prices have still risen over the past two pricing windows.

“These increases, if not checked, could spill over into transport fares and the prices of other goods and services, ultimately affecting the cost of living,” he said.

Mr Ofosu noted that Cabinet has therefore directed the Ministers for Finance and Energy to take immediate steps to reduce fuel prices by removing certain taxes and margins.

"The first directive that cabinet has issued is that the finance and energy ministers should take immediate steps to reduce the price of fuel through the removal of some taxes and margins on fuel, effective the next pricing window, which is about a week from today. And this is supposed to be done as soon as possible."

He attributed the price hikes to disruptions in global oil supply, particularly restrictions along the Strait of Hormuz, a key route through which a significant portion of the world’s crude oil is transported.

The situation, he said, has led to higher crude oil prices, increased insurance premiums, and rising freight costs.

Despite these challenges, he stressed that Ghana’s current economic stability has helped keep fuel prices lower than levels recorded during previous global crises, such as the Russia-Ukraine war.

Government, he added, remains committed to implementing measures that will ease pressure on households and prevent further increases in the cost of living.