Protect people, not prices - Joe Jackson rejects fuel tax cuts and subsidies
Joe Jackson, CEO of Dalex Finance, rejected calls for fuel tax cuts and subsidies on Thursday on PM Express on Joy News, warning that such measures could worsen Ghana's economic outlook. He stated, "Number one, protect households, not prices." He said the mistake would be to suppress prices worldwide through blanket subsidies or administrative controls.
Mr. Jackson cautioned that rising energy costs could trigger broader inflationary pressures, particularly in food prices, because the cost of food, even locally grown food, has embedded in it up to 40% of logistics costs. He noted that both local and imported food would be affected by rising global costs, as the cost per container, insurance, and transportation costs have gone up. He added that recent low inflation could make the impact of any price shock feel worse.
Mr. Jackson urged authorities to focus on vulnerable groups and called for urgent action to stabilise food logistics. He proposed setting up a food logistics Task Force, including trade, transport, local government, and security, focused on the movement of staples. He cautioned against interventionist policies such as export bans and price controls.
Quick Summary
Joe Jackson, CEO of Dalex Finance, has cautioned against fuel tax cuts and subsidies. He warns rising energy costs could trigger inflationary pressures- particularly affecting food prices.
Summary - read the full story for complete context.
Image: MyJoyOnline
Also covered by
GhanaFront aggregates news from trusted sources. Click to read the original article.
Keywords
Explore related tagsMore from MyJoyOnline
Related Stories
More from Business & Economy
Sunyani Market traders urge government action amid surging ginger prices
Sunyani market traders are worried about the rising cost of ginger - will their businesses survive?
2h ago•2 min read
Maphlix Farms to supply 3,000 tonnes to help bridge tomato deficit
A Ghanaian farm is stepping up to bat in the tomato crisis - but can they deliver?
3h ago•2 min read
ECG upgrades infrastructure, assures reliable, stable power supply
ECG upgrades infrastructure in Accra - but will it be enough to meet growing electricity demands?
3h ago•2 min read
Oil rises as investors remain wary US-Iran ceasefire will open supply flow
Will a ceasefire hold and open up oil supply - or will geopolitical tensions keep prices high?
6h ago•2 min read
