Professor of Finance at Andrews University, Prof. William Peprah, has urged the government to move beyond short-term fuel price interventions, insisting that a more structured medium-term approach is needed to ensure both economic stability and effective planning.
His comment follows the government’s directive to suspend fuel taxes for 4 weeks, subject to review based on global oil prices amid rising tensions in the Middle East.
Speaking in an interview, Prof. Peprah said frequent or short-lived fuel relief measures are not sustainable and could undermine effective fiscal management.
He argued that government must integrate fuel pricing decisions into a broader economic framework, including budget adjustments and expenditure reviews.
According to him, fuel price interventions should be linked to a medium-term policy response of about three to six months, rather than weekly or monthly adjustments.
“The short-term proposal for four weeks is not feasible. The world is not going to end now,” he said, adding that global shocks, including conflicts and supply disruptions, often take months to stabilise.
Prof. Peprah further noted that even minor global disruptions can have prolonged effects on economies, stressing the need for a stable and predictable policy direction.
Meanwhile, IMANI Africa, COPEC Ghana, and the Institute for Energy Security have called for a GH¢1.65 reduction per litre in fuel prices.
Prof. Peprah, however, maintained that any fuel relief must be accompanied by a broader fiscal adjustment plan, including a review of government expenditure to align spending with reduced revenue.
He cautioned that without such coordination, short-term tax cuts could widen the fiscal deficit and disrupt the 2026 budget targets.
“We must align our expected revenues with expenditure so that the 2026 targets can still be achieved,” he emphasised.
