Reduce Fuel Prices By GHC1.65 -Think Tanks Urge Gov’t

A coalition of policy and energy think tanks has called on the government to slash petroleum prices by GH¢1.65 to ease the burden on consumers grappling with rising living costs.

The coalition, made up of IMANI Africa, COPEC Ghana, INSTEPR, and IES, said the reduction should come through a structured review of taxes, levies and margins in the fuel price build-up, not temporary fixes.

Their proposal follows a directive from President John Dramani Mahama to the Energy and Finance ministries to reassess the pricing formula and recommend possible cuts.

In a statement issued on April 14, 2026, the coalition argued that the GH¢1.65 reduction should remain in place for two months, rather than the four weeks proposed by the government, to provide more stable relief for households and businesses.

“We propose a cumulative reduction of GHC1.65 from the current petroleum price build-up. This should last for a period of TWO months instead of the FOUR weeks proposed by the government.”, the coalition.

They maintain that the measure would not significantly hurt state finances, citing expected gains from crude oil exports, while also helping to tame transport and food inflation driven by high fuel costs.

The coalition, however, stress that beyond short-term relief, deeper reforms are needed to prevent recurring price shocks in the petroleum sector.

Expert Warns Cut Is Too High

Meanwhile, a finance expert has cautioned against fully implementing the proposed reduction, warning of serious revenue implications.

Professor Williams Kwasi Peprah of Andrews University described the GH¢1.65 cut as excessive, noting it represents about a 40% reduction in the tax component of fuel prices.

Speaking on JoyNews, he argued that such a move could cost the state roughly GH¢600 million monthly and threaten funding for key government projects.

Instead, he proposed a more moderate 20% reduction, which would reduce the monthly revenue loss to about GH¢300 million.

To manage the shortfall, Prof. Peprah advised the government to defer some expenditure — particularly in goods, services and capital projects — to 2027, allowing room to cushion consumers without destabilising the budget.