Ghana’s Minister for Energy and Green Transition, Dr John Abdulai Jinapor, has cautioned against hasty calls to remove taxes on petroleum products, stressing that such decisions could undermine critical sectors of the economy if not carefully managed.
Speaking at the opening of COMAC Safety Week 2026 in Accra on Tuesday, April 7, Dr. Jinapor underscored the importance of fiscal discipline in managing fuel pricing, noting that while tax reductions may appear attractive to consumers, they come with significant trade-offs.
“Some have suggested removing taxes on petroleum products. While that may sound appealing, it comes at a cost—other sectors such as roads or health would have to sacrifice,” he stated.
According to the Minister, government is currently evaluating all available policy options to ensure that any intervention in fuel pricing remains sustainable and does not create long-term economic instability.
His remarks come at a time when global petroleum prices continue to be influenced by geopolitical tensions, placing pressure on domestic fuel prices. Dr. Jinapor outlined a three-pronged approach guiding government policy: ensuring product availability, maintaining fair pricing, and upholding fiscal discipline.
He emphasized that maintaining supply remains the top priority, noting that some countries are grappling with fuel shortages severe enough to disrupt schools and workplaces. Ghana, he said, has so far remained resilient due to coordinated efforts between the Ministry, regulators, and industry players.
On pricing, the Minister acknowledged the burden on consumers but warned that poorly structured interventions—such as unsustainable tax cuts—could worsen the situation over time.
Reflecting on past policy decisions during the COVID-19 era, Dr. Jinapor noted that attempts to provide short-term relief through subsidies and unfinanced price reductions had previously contributed to macroeconomic challenges, including high inflation.
“I would rather maintain stable inflation without unsustainable subsidies than offer short-term relief that leads to long-term hardship,” he said.
He stressed that government remains committed to reviewing petroleum taxes and levies but will proceed cautiously to avoid decisions that could destabilize the broader economy.
“That is prudent economic management,” he added.
Dr. Jinapor reaffirmed government’s commitment to balancing consumer protection with economic sustainability, assuring stakeholders that ongoing consultations with the Finance Ministry and industry players would inform future policy decisions.
The COMAC Safety Week event, held under the theme “Managing Risk Before It Becomes an Incident,” brought together key stakeholders in Ghana’s petroleum downstream sector to discuss safety, regulation, and industry best practices.
