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.
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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.
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