Government has ordered all ministers and senior government officials to strictly abide by the ban on fuel allowances, as part of renewed efforts to enforce fiscal discipline and manage public expenditure amid rising fuel price pressures.
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 recent global developments on Ghana’s economy.
He said the emergency Cabinet session was convened to review the effects of geopolitical tensions, particularly the US-Israeli-Iranian conflict, which has contributed to a sharp increase in global crude oil prices and affected fuel prices at the pump.
He explained that Cabinet also took note of Ghana’s recent macroeconomic gains, including currency stability and a reduction in inflation, which have helped cushion the economy despite external shocks.
However, he noted that the recent developments have still led to upward pressure on fuel prices, with potential spillovers into transport fares and the general cost of living if not addressed.
As part of the decisions taken, Cabinet reinforced the directive banning fuel allowances and fuel-related benefits for ministers and senior government officials.
“In addition to this, the President took the opportunity at the Cabinet meeting to remind all ministers and senior government officials and appointees to adhere strictly to his ban on fuel allowances and the application of fuel. And this applies to all ministers and senior government officials,” he said.
He stressed that the directive applies to all appointees without exception and forms part of government’s broader efforts to demonstrate cost discipline during a period of external economic pressure.
The Cabinet meeting also considered other measures, including proposed reductions in fuel taxes and margins, as well as plans to strengthen public transport services to cushion commuters against rising transport costs.
SOURCE: Mubarak Yakubu
