Source: Mavis Fantevi
Policy analyst and Economist, Dr Peter Terkper, has warned that Ghana faces difficult fiscal decisions as global oil market shocks threaten to deepen pressure on government revenue, even as President John Dramani Mahama convenes an emergency cabinet meeting over rising fuel price concern.
Speaking on Bullet TV’s Morning Target on April 8, Dr Terkper stressed that Ghana’s heavy reliance on petroleum-related revenue makes it highly vulnerable to external shocks, particularly amid escalating tensions in the Middle East.
“This is going to impact government revenue significantly,” he stated, pointing to the GH¢1 fuel levy as a critical measure introduced to help manage mounting debts in the energy sector.
According to him, while the levy is not a complete solution, it provides essential financial support, and any attempt to remove it or reduce fuel-related taxes would place significant strain on government finances.
“If you take it out, you all know the pain government will go through,” he cautioned.
Dr Terkper described the current situation as a “real thinking moment” for policymakers, especially the Finance Ministry, as they balance public pressure to ease fuel prices against the need to maintain stable revenue streams.
He noted that domestic revenue mobilisation is already under stress, with challenges such as revenue leakages compounding the problem. In such a context, he warned that any decline in petroleum revenue could have far-reaching consequences.
“If revenue is down, government development will be affected, and the fiscal state will also be impacted,” he explained, adding that rising debt levels could further worsen the country’s financial position.
The analyst emphasised that while government may consider interventions to cushion consumers, such decisions must be weighed carefully to avoid undermining fiscal stability.
President Mahama’s planned emergency cabinet meeting is expected to assess these risks and outline possible policy responses, but Dr Terkper believes the stakes are high.
Despite the uncertainty, he noted that any stabilisation in global oil markets could offer temporary relief, giving government what he described as a “breathing space” to reassess its revenue and expenditure strategies.
His remarks underscore growing concern among economic watchers as Ghana navigates a volatile global energy landscape with significant implications for fuel prices and national development.
