Ghanaians will pay back — Ibrahim Adjei on suspension of fuel taxes

The Resident Country Director of International Investments LLC, Ibrahim Adjei, has argued that the government’s suspension of some fuel levies will shift the financial burden onto consumers in the future.

His comment follows a decision by the government to suspend selected petroleum taxes to cushion Ghanaians against rising fuel prices linked to geopolitical tensions in the Middle East.

The policy, announced after a cabinet meeting on Thursday, April 9, has been widely welcomed by consumers hoping for immediate relief at the pumps.

However, speaking on Channel One TV’s Breakfast Daily programme on Monday, April 13, Mr. Adjei cautioned that the move could have unintended consequences across the fuel distribution chain.

He explained that the pricing structure within the petroleum sector involves several players, including bulk distribution companies, oil marketing companies and transport operators, all of whom depend on regulated margins.

“When you suspend the margins… you’re shifting the pain. Cost is a pain. You’re shifting it,” he said.

According to him, the intervention could discourage some operators from servicing less profitable areas, particularly rural communities, due to rising operational costs without corresponding compensation.

He cautioned that this could lead to supply distortions, with companies prioritising high-volume stations while neglecting others.

“Ghanaians are going to pay back later,” he stressed.