Cut Fuel Taxes if Global Oil Prices Spike – Prof. Peter Quartey Advises Government

Former Director of the Institute of Statistical, Social and Economic Research (ISSER), Professor Peter Quartey, is urging the government to consider reducing taxes on petroleum products should global oil prices rise due to escalating tensions in the Middle East.

He believes such a move would help cushion vulnerable households from the financial strain of higher fuel costs.

Speaking to Citi Business News during a public lecture marking the 70th anniversary of Wesley Grammar School, Prof. Quartey stressed the importance of reviewing fuel-related taxes when global conditions become unfavourable.

“For consumers, we must pay attention to some of the taxes especially those on petroleum. If international oil prices shoot up significantly, government may need to cut or remove some taxes to protect the poor,” he said.

Prof. Quartey also highlighted the need for Ghana to develop strong financial and energy-sector buffers to withstand external shocks, noting that global volatility often translates into domestic economic pressures.

He referenced the role of the Bulk Oil Storage and Transportation Company (BOST) in maintaining strategic petroleum reserves to mitigate such shocks, but noted that Ghana has not fully realised this objective.

“This is a wake-up call for us to start steadily rebuilding our buffers. If we do so, we can better protect ourselves when global disruptions occur,” he added.

His comments follow growing worries about how unrest in the Middle East may affect global crude oil supply and prices. Industry projections already point to an increase in fuel prices during the second pricing window of March.