Business & Economy

You cannot do everything today - Prof Quartey on fuel price relief

Abubakar Ibrahim•4h ago•400 words · 2 min read

Summary

Professor Ernest Quartey backed government's cautious approach to easing fuel prices, urging a measured response as global uncertainty deepens. Professor Quartey said the decision to adjust margins rather than cut taxes reflects the difficult trade-offs facing policymakers. The Presidency recently indicated it is intervening to stabilise petroleum prices in response to tensions in the Middle East, which have pushed global oil prices upward and raised concerns about the cost of living.

Professor Quartey acknowledged the pressure on consumers but warned against undermining fiscal plans. He said, "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." He added, "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." He argued that touching margins signals intent without destabilising revenue streams. Professor Quartey stressed that the global context makes aggressive interventions risky, especially given the unpredictable nature of the ongoing conflict driving price volatility. He cautioned against front-loading relief measures, noting that policymakers must retain flexibility as the situation evolves. He said, "So you in as much as you want to assist consumers, you cannot do everything today."

Professor Quartey emphasized the need for continuous review, suggesting that current relief measures should not be seen as permanent. He said, "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."

Quick Summary

Economist Ernest Quartey has advised government to be measured in its response to rising fuel prices - citing global uncertainty. He suggests aggressive interventions could be risky, as policymakers balance aiding consumers and maintaining fiscal stability.

#fuel prices #Ghana #economy #Ernest Quartey #fiscal policy

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