A member of the Convention People’s Party, Kwame Jantuah, has welcomed plans by John Dramani Mahama to hold an emergency cabinet meeting on rising fuel prices.
Speaking in an interview on GHone TV on Tuesday, he noted that the decision by the President shows that he understands the challenges Ghanaians are facing.
He explained that the move to convene a cabinet meeting is a sign that the government is paying attention to the impact of fuel price increases on citizens.
According to him, government must not focus only on removing specific charges, such as the one cedi levy, but rather look at the entire structure of petroleum pricing.
He stressed that even if a single charge is removed, fuel prices could still remain high, making it necessary for a broader approach.
He pointed out that there may be room to adjust some petroleum charges, but emphasised that a long term strategy is needed to stabilise prices.
He urged government to take advantage of Ghana’s status as an oil producing country to reduce dependence on imported refined fuel.
He called for the expansion of the Tema Oil Refinery to increase local refining capacity.
He suggested that part of Ghana’s crude oil could be refined locally and stored as strategic reserves to help cushion the country during periods of high global prices.
He added that increasing strategic fuel reserves beyond the current levels would help the country respond better to future shocks.
He further noted that government could use excess revenue from higher global crude oil prices to cushion consumers.
According to him, with crude oil prices currently above the benchmark used in the national budget, there is an opportunity to provide some relief.
He raised concerns about capital flight, explaining that importing refined fuel leads to the outflow of foreign exchange.
He proposed that refining more fuel locally would help reduce this and strengthen the economy.
According to him, while the President’s decision to review the situation is a positive step, the outcome of the cabinet meeting will determine whether it brings real relief to Ghanaians.
By: Jacob Aggrey
