Increase fuel prices to save ailing economy – IMF tells Mills

The International Monitory Fund (IMF) has expressed concerns about the economic challenges in Ghana raising the red flag, especially over rising oil imports without corresponding increases in fuel prices domestically.

An IMF mission is currently on a working visit to Ghana meeting all the top managers of Ghana's economy including the Finance Minister, the Governor of the Bank of Ghana and President J.E.A Mills.

The IMF Mission led by Christina Daseking expressed concerns about the high cost of living and continuous depreciation of the Ghana Cedi against the US dollar. The IMF is now asking government to be swift in arresting the situation.

'Price of oil import is risen a lot and the domestic price, however, has not been adjusted,' Daseking pointed out at a meeting with President Mills on Tuesday. 'This is now creating cost of about GhC60 million every month.'

She added: ' Certainly, we want more people to support social programmes. The cost of living has increased because of the depreciation. Most people know the subsidies on fuel benefit the higher income groups and we'll encourage you to take necessary [action]… 

'We know you are committed to fiscal discipline and we hope with that we'll be able to continue our very productive relationship. 

President Mills on his part said his administration is desirous of pursing policies which will minimise the effects of the economic challenges facing the country.

He assured the IMF of his government's resolve to overcome the challenges bedeviling his administration. According to him, government's engagement with the international community will inure to the benefit Ghanaians. 

'We have challenges and especially when you have elections the issues which arise are sometimes more difficult than in the ordinary years, but that doesn't mean we should not address the situation because making sure we avoid the situation will make things more easier for us to be able to deal with after the elections,' President Mills said.

He added: 'We appreciate the kind of expertise that you always display and relationship we enjoy with you. We very much value them. Let me say that at the end of it all we want Ghanaians to derive the best from whatever decision we have to take.'

Source: Citifmonline