Energy Policy Analyst On Fuel Price Reduction And Why A Reckless Finance Minister Is A Problem

Energy Policy analyst Benjamin Nsiah responded to the question of whether fuel prices could be lowered this year, especially with a new government taking power, by outlining the conditions that could result in such a decrease.

Ben Nsiah stated in an interview with Okay FM on Wednesday, January 8, 2025, that the price is based on the global market since the fuel industry has been deregulated. “The only thing the government can do is to scrap the tax on it,” he said

“We should anticipate a decrease in fuel prices if the government decides to eliminate any margin or taxes on it. Fuel prices will decline if global market prices decline and the Ghanaian cedi remains stable and strong against the US dollar, according to Ben Nsiah.

Additionally, the energy analyst cautioned that since “we have no control over it and they are not subsidizing it,” politicians should stop politicizing fuel prices.

Ben Nsiah went on to say that since the nation is currently in debt and in dire need of funds, it will also be severely impacted if the current administration decides to do away with fuel taxes. But if the government chooses to lower taxes instead, then prices can also be reduced.

He also stated that, a weak cedi or depreciation can offset the government’s tax cuts even after the price has been lowered.

“The 2017 special petroleum tax, which was 17.5% and rather costly, increased the tax component as well. Petroleum prices in Ghana continue to be impacted by the currency’s depreciation”.

Ben Nsiah concluded that fuel prices would eventually be lower if Ghana gets a serious finance minister and governor of the Bank of Ghana who could manage the physical side of things with effective monitoring tools and a stable cedi.

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He said Ghana could maintain reasonable fuel prices even if the global market increased with the aforementioned checks. But in the event that any careless finance minister and a governor of the central bank who are unable to effectively manage the cedi, the people will still undoubtedly be burdened by the high cost of fuel.