ACCRA, Ghana, 9 April: Cabinet has announced a series of measures aimed at mitigating the impact of recent increases in fuel prices, which government attributes to escalating geopolitical tensions involving the United States, Israel, Iran, and other countries in the Middle East.
Briefing the media after a Cabinet meeting, the Minister of State in charge of Government Communications, Felix Kwakye Ofosu, explained that the price hikes are largely due to disruptions in global oil supply chains.
“What has happened is that because of restrictions in the Strait of Hormuz, the quantities of fuel that could be transported through that Strait has reduced significantly, about 20% of crude oil parcels pass through that Strait and since the beginning of the conflict, there has been significant restriction. This has led to an increase in crude oil prices”
He further noted that the situation has triggered additional cost pressures on the global oil market.
“It has led to an increase, significant increase in insurance premiums and other such costs. And that is what has accounted for the increases we’ve seen in the last two pricing windows. Despite the very stable economic environment we’ve had, which has cushioned Ghanaians significantly”.
Hon. Kwakye Ofosu announced that Cabinet has directed the Ministers for Finance and Energy to take immediate action to reduce fuel prices by reviewing and removing certain taxes and margins.
“So cabinet believes that a number of steps need to be taken in order to avert any further fallouts. So 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”
In addition, Cabinet has tasked the Transport Ministry with fast-tracking the deployment of newly acquired Metro Mass Transit buses to ease the burden on commuters.
“Second, the transport minister has also been instructed to ensure the expedited deployment of newly acquired metro mass buses. You recall that over the weekend, I announced the arrival of 100 metro mass buses. Another batch of 100 buses are expected in August. And then the last batch of 100 are expected in November to make up 300. But currently we have 100 available. And the transport minister has been instructed by cabinets to ensure expedited deployment of these buses in high traffic corridors to ensure that it alleviates any difficulties that may have arisen out of the recent price increases”
He added that the buses will provide more affordable transport options for the public.
“The transport minister has also been charged with ensuring that these metro mass buses, in addition to the existing ones, charge or maintain transport fares, which are lower than what private sector operators charge. And this is to ensure that Ghanaians are cushioned, especially when we reach peak periods at the rush hour”
Hon. Kwakye Ofosu further revealed that President John Dramani Mahama used the meeting to reiterate strict compliance with the government’s directive on fuel usage.
“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 allocation of fuel. And this applies to all ministers and senior government officials”
Story by: Emmanuel Romeo Tetteh(#RomeoWrites✍️)/Ahotoronline.com | Ghana 🇬🇭