Chief Executive Officer of Dalex Finance, Joe Jackson, has cautioned government against implementing fuel tax cuts or subsidies, warning that such measures could undermine Ghana’s economic stability.
Speaking on Joy News’ PM Express, Mr. Jackson argued that while rising fuel prices pose challenges, broad interventions like subsidies could distort the economy and place additional strain on public finances.
He stressed that the real threat lies in food inflation, noting that logistics account for up to 40 percent of food costs. According to him, any increase in fuel prices would inevitably push food prices higher, affecting both locally produced and imported goods.
“We are between a rock and a hard place where food prices are concerned,” he said, explaining that rising transport, insurance, and global shipping costs were already driving prices upward.
Mr. Jackson also warned that Ghana’s recent low inflation levels could make any sudden price increases feel more severe for consumers.
Rather than broad price controls, he advocated targeted interventions aimed at protecting vulnerable groups such as low-income households and transport-dependent workers. He cautioned that blanket subsidies often benefit wealthier consumers more than the poor.
“Protect households, not prices,” he advised, urging government to maintain fiscal discipline and avoid reactionary policies that could worsen the situation in the medium term.
He further proposed the creation of a national food logistics task force to address rising distribution costs and stabilise the movement of essential commodities across the country.
Mr. Jackson emphasised that careful, measured policy responses would be critical in navigating potential economic shocks, warning that overreaction could inflict more damage than the challenges themselves.
