Government is being urged to prioritise exchange rate stability over tax cuts as the more effective lever for containing rising fuel prices.
The call comes amid renewed pressure on petroleum prices, with concerns that policy responses focused on taxes may deliver only limited relief if currency volatility persists.
Analysts argue that Ghana’s heavy reliance on imported fuel makes the cedi’s performance the most critical factor in pump price adjustments, amplifying the impact of exchange rate swings on consumers and businesses.
Speaking to Citi Business News, Executive Director of the Center for Environmental Management and Sustainable Energy, Benjamin Nsiah, stressed that stabilising the foreign exchange regime will have a more sustained impact on fuel prices than tax reductions.
His comments follow President John Dramani Mahama’s directive for an emergency cabinet meeting to address the recent surge in fuel prices.
“I think that a very stable forex will even reduce the prices more than even taking taxes off the build-up,” he said.
At the start of April, fuel prices have went up at the pumps reflecting volatility in international crude oil markets.
Data from the National Petroleum Authority shows that petrol prices climbed by about 15% to GH¢13.30 per litre, while diesel recorded an even steeper increase of roughly 19% to GH¢17.10 per litre for the April 1–15 pricing window.
The surge has raised concerns about knock-on effects on transport fares, food prices and the general cost of living.
Despite the pressures, President Mahama speaking at the Kwahu Business Forum on Saturday April 4, 2026 sought to reassure the public that the broader economy remains resilient.
“I can confidently tell you that the economy will not collapse because of the war in Iran,” he emphasised.
