A former Deputy Minister of Energy, Andrew Egyapa Mercer, has challenged claims that the John Dramani Mahama-led government has reduced fuel taxes, stating that no such measure has been implemented.

According to him, government is instead relying on the National Petroleum Authority’s Unified Petroleum Pricing Fund (UPPF) to cushion fuel prices, rather than cutting taxes and margins as earlier communicated.

This, he argues, contradicts assurances from the Presidency, where the Minister of State for Government Communications, Felix Kwakye Ofosu, indicated that Cabinet had directed the Ministers for Finance and Energy to reduce certain taxes and margins on fuel for a month to ease the burden on Ghanaians.

Mr. Kwakye Ofosu had explained that the move was in response to rising global fuel prices driven by geopolitical tensions in the Middle East, particularly involving the United States, Iran, and Israel. Despite gains such as a strengthening cedi and easing inflation, fuel prices have increased in recent pricing windows.

Government subsequently announced a reduction of GH¢2 per litre on diesel and GH¢0.36 on petrol.

However, speaking on Badwam on Adom TV, Mr. Mercer insisted that the reductions are being financed through the UPPF, a fund intended to cover transportation costs for distributing fuel nationwide.

He warned that continuous reliance on the fund could disrupt fuel distribution, as it may undermine the ability of tanker drivers to supply fuel across regions, potentially leading to price disparities.

Mr. Mercer further cautioned that government continues to receive full fuel taxes and margins, stressing that the situation could worsen if tensions in the Middle East escalate beyond a month.