Government's GH¢2 fuel price intervention not enough to cushion consumers — Fiifi Boafo

A member of the New Patriotic Party's National Communications Team, Fiifi Boafo, says the government's temporary GH¢2 reduction in the regulatory margin on diesel will not provide the relief Ghanaians expect from rising fuel prices.

President John Dramani Mahama on Monday directed a GH¢2 reduction in the regulatory margin on diesel for one month to cushion consumers.

The Presidency said the intervention is intended to ease the burden on consumers, contain inflationary pressures and minimise the impact of rising transport costs on the cost of living.

Speaking on Accra-based Good Morning Ghana on Tuesday, August 4, Mr Boafo questioned how the government intends to finance the intervention, especially as consumers continue to pay the Energy Sector Levies (Amendment) Act levy, commonly referred to as the "Dumsor Levy."

"Where is government taking these two Ghana cedis from? Bear in mind, there's Dumsor levy. At what cost? The statement was silent about it, and I think that it is only right for some explanation to be given," he said.

The NPP communicator argued that the government's objective of preventing transport fare increases may not be achieved, pointing to indications from transport operators that they still intend to adjust fares despite the temporary reduction in diesel prices.

He maintained that if transport fares go up, the cost of food and other goods will also increase, worsening the financial burden on households.

"It doesn't look like this proposed two Ghana cedis is going to give us the relief we are probably expecting," Boafo stated.

He further questioned whether the current administration still holds the same position it took while in opposition, when it attributed high fuel prices to poor governance, insisting that Ghanaians deserve clear answers on the factors driving the current increases in fuel prices.