Economics professor Ernest Quartey has backed government’s decision to ease fuel prices by adjusting margins instead of cutting taxes.
He warns that any relief must be measured and sustained over time amid global uncertainties.
“Inasmuch as I am also a consumer, and I would love to see lower prices at the pumps, I think these taxes have been earmarked already.
“Government has budgeted with the taxes, and there are some critical expenditures that need to be incurred, so you need to strike a delicate balance.”
His comments come as the presidency recently indicated it is intervening to help stabilise petroleum prices in response to rising global crude costs linked to escalating tensions in the Middle East.
The intervention, however, has focused on trimming margins within the pricing structure rather than altering tax components.
Prof. Quartey said that the approach signals intent without destabilising public finances.
“And I believe I agree with the government that if you touch the margins, at least you show some commitment and get some reduction to consumers.”
He cautioned against sweeping measures, stressing that the global situation remains unpredictable.
“We also have to note that this is a war that nobody can predict the end of.”
According to him, the uncertainty surrounding the conflict means policymakers must avoid exhausting their options too quickly.
“Inasmuch as you want to assist consumers, you cannot do everything today. You have to be gradual in the sense that as time progresses, you will know whether to even do more, or perhaps the margins you need to put them back.”
He emphasised that any relief strategy must remain flexible and subject to constant review.
“That’s, for me, the way to go. It’s a gradual process, review over time and see whether you need to do more or you need to even take out what you have given to consumers.”
