Mahama Scraps Fuel Allowance for All Political Appointees: “Cost-Cutting Measure”
- President John Mahama has directed the cancellation of payment of fuel allowances to all political appointees
- Deputy Presidential Spokesperson Shamima Muslim noted that there will be some exemptions
- The decision to end fuel allowances for all political appointees is part of cost-cutting measures by the government
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President John Mahama has ordered an end to fuel allowances for all political appointees.
This is part of his administration’s moves to cut public expenditure.
Source: Getty Images
The government, in a statement, said it aims to redirect funds into key priority sectors.
“The President believes that leadership must also bear its part of the sacrifices it is calling on the people to make."
What the scrapping of fuel allowances means
Deputy Presidential Spokesperson Shamima Muslim noted that there will be some exemptions for this policy.
Muslim told TV3 the directive will not affect state travels and official assignments to be carried out by government appointees because the directive only applies to weekly or everyday allocation of fuel allowances to state officials.
“The exemption is that there will still be room for some regulated official travel and assignments. For those regulated official travel and assignments, there will be room for the state to provide fuel for those particular travels."
What else has government done to cut spending?
The Mahama administration made fewer ministerial and presidential staff appointments.
It also cancelled satellite TV subscriptions for offices at the Presidency and other state institutions.
The presidency said televisions in the various offices at the Jubilee House have been limited to local channels only.
This decision comes ahead of the implementation of the GH¢1 levy expected to be charged on every litre of fuel purchased at the pump.
Fuel levy increase set for July 16
The implementation of the GH¢1 increase per litre in taxes on fuel products will begin from July 16, following a prior postponment.
The Ghana Revenue Authority has encouraged stakeholders in the petroleum downstream sector to take note of the new rates and make the needed price increases ahead of the effective date.
The Energy Sector Levies (Amendment) Act, 2025 (Act 1141) introduces revised rates for the Energy Sector Shortfall and Debt Repayment Levy (ESSDRL) across several petroleum products.
These changes are expected to help close funding gaps and support the repayment of legacy debts in the energy sector.
Source: Getty Images
The Energy Sector Levies were originally introduced to address money problems in the energy sector.
The latest tax increase is to generate additional revenue to settle outstanding debts and support critical energy infrastructure.
The International Monetary Fund backed the tax increase on fuel products as important to fiscal stability.
The government assured that it will continue to monitor the impact of the levy increase and maintain engagement with industry players.
Mahama bans first-class flights for appointees
YEN.com.gh also reported that Mahama banned non-essential foreign travel for his appointees.
Per the ban, all government appointees in his administration would not be allowed to use first-class flights.
The President also announced plans to introduce a comprehensive code of conduct for government officials.
Proofreading by Samuel Gitonga, copy editor at YEN.com.gh.
Source: YEN.com.gh
