Former Finance Minister Dr Mohammed Amin Adam has called on the government to suspend or abolish recent fuel tax increases, arguing that the current GH¢2 per-litre relief is insufficient to ease the burden of high pump prices.
Dr Amin Adam said diesel prices remain between GH¢17.55 and GH¢18.99 per litre, despite the government’s relief measure, and urged authorities to introduce a broader intervention to bring prices down.
“What we need now is a comprehensive intervention by the government,” he said in a post discussing the country’s fuel prices.
He specifically called for a review of fuel-related taxes, including the suspension of recent increases or their complete abolition.
According to him, taxes and exchange-rate management remain among the key areas through which the government can influence domestic fuel prices, given Ghana’s position as a price-taker on the international petroleum market.
Dr Amin Adam explained that pump prices are determined by the international price of petroleum products, the exchange rate, taxes, levies and margins.
He said increases in international oil prices directly raise the landed cost of fuel, while movements in the cedi can either worsen or cushion the impact on consumers.
“When international prices rise, the landed cost of fuel rises. When the cedi depreciates, the domestic cost rises further. When the cedi strengthens, it can cushion part of the external shock,” he stated.
The former Finance Minister argued that the current fuel-price pressures should not be viewed as a new phenomenon associated with the present administration.
He said the same pricing mechanism existed under the previous New Patriotic Party (NPP) administration and remains applicable under the current National Democratic Congress (NDC) government.
“This transmission mechanism did not suddenly appear in January 2025,” he said. “It existed under Akufo-Addo and Bawumia. It exists under Mahama.”
Dr Amin Adam further argued that some government policies were contributing to the pressure on pump prices.
He cited the GH¢1 per-litre fuel levy, higher levies on fuel oil and what he described as a 12 per cent depreciation of the cedi this year.
He consequently maintained that the government should use the policy tools available to it to provide greater relief to motorists and businesses.
“If exchange-rate management was the responsibility of government then, it remains the responsibility of government today,” he stated.
His comments come amid continued pressure on fuel consumers as pump prices remain closely linked to international petroleum prices, exchange-rate movements and domestic taxes and levies.
