Mahama enforces fuel coupon ban for ministers as cabinet moves to slash fuel taxes

In a move aimed at demonstrating leadership by example during a period of volatility, President John Mahama has issued a stern directive enforcing a total ban on fuel allowances and coupons for all ministers and senior government appointees. The decision is widely seen as part of broader efforts to reduce government expenditure and promote accountability at the highest levels of leadership.

The announcement was made by the Minister of State in charge of Government Communications, Felix Kwakye Ofosu, during an emergency press briefing on Thursday, 9th April 2026, following a high-level Cabinet session. The briefing addressed growing public concern over fuel price increases and the government’s response strategy.

As Ghanaians grapple with rising fuel costs at the pump, the President used the Cabinet meeting to remind his team that the era of state-funded fuel for personal use is over. This directive reflects a shift toward shared sacrifice between government officials and ordinary citizens facing economic pressures.

The strict adherence to this ban signals a push for fiscal discipline within the executive arm, reinforcing government’s commitment to prudent financial management. “The President took the opportunity to remind all ministers and senior government officials to adhere strictly to his ban on fuel allowances and the allocation of fuel,” Mr Kwakye Ofosu stated, emphasising that the directive is immediate and non-negotiable.

To provide immediate relief to the general public, Cabinet has ordered the Ministers of Finance and Energy to remove several taxes and margins on fuel. This policy intervention is expected to directly impact pump prices and ease the cost burden on households and businesses.

This intervention is expected to trigger a significant reduction in fuel prices effective the next pricing window, roughly one week from today. Analysts suggest this could also influence transport fares and inflation trends in the short term.

The Minister explained that while Ghana’s economy remains strong, with inflation plummeting to 3.2% and the Cedi showing remarkable stability, external shocks from the conflict tensions in the Middle East, stifling oil passage through the Strait of Hormuz, have driven up global crude prices and insurance premiums. These external pressures continue to shape domestic economic conditions.

“Cabinet believes a number of steps need to be taken to avert further fallouts,” he noted. “The removal of some taxes and margins... is supposed to be done as soon as possible and will last for an initial period of four weeks.” This temporary measure will be reviewed based on evolving global conditions.

In a strategic move against rising transportation costs, the government has also ordered the expedited deployment of 100 newly acquired Metro Mass Transit buses. The initiative aims to provide affordable and reliable transportation options for commuters.

These buses will be funnelled into high-traffic corridors to provide a cheaper alternative to private transport operators. This is expected to ease congestion and reduce commuting expenses, particularly in urban centres.

Kwakye Ofosu revealed that this is only the first wave, with another 200 buses expected by November. This phased rollout indicates a long-term plan to strengthen public transportation infrastructure.

The Transport Ministry has been specifically tasked with ensuring these state-run buses maintain fares significantly lower than those in the private sector, particularly during peak rush hours. This directive is intended to protect commuters from fare hikes during high-demand periods.

Despite the current pressure, the Minister pointed out that the government's economic management has ensured that fuel prices today are significantly lower than they were during the peak of the Ukraine-Russia conflict. This comparison highlights the relative stability achieved despite ongoing global uncertainties.

He assured the nation that the government is monitoring the Strait of Hormuz situation closely and will review the temporary tax removals after the initial 21-day period to determine if further interventions are required. The review process will guide future policy decisions depending on global market trends and domestic economic needs.