Economist Prof. Peter Quartey has supported government’s decision to maintain fuel taxes while adjusting margins, cautioning that drastic tax cuts could undermine planned public spending.
Speaking on PM Express Business Edition on Joy News with George Wiafe, on the sidelines of the IMF Spring Meetings in Washington, D.C., Prof. Quartey emphasised the need to balance consumer relief with fiscal responsibility.
He explained that fuel taxes have already been factored into government’s budget and are tied to essential expenditures, making it necessary to proceed carefully.
According to him, the decision to adjust margins instead of cutting taxes reflects a measured response to public pressure while safeguarding revenue streams.
Prof. Quartey also highlighted the uncertainty surrounding global developments, particularly geopolitical tensions, noting that unpredictable conditions make it risky to implement sweeping policy changes.
He advocated for a gradual and flexible approach, allowing government to assess evolving conditions and adjust measures over time.
He added that any relief introduced should be subject to periodic review to determine whether further adjustments are needed or existing measures should be reversed.
His remarks come as government signals efforts to stabilise petroleum prices amid rising global concerns linked to tensions in the Middle East and their potential impact on Ghana’s economy.