Former Director of the Institute of Statistical, Social and Economic Research (ISSER), Professor Peter Quartey, is pressing the government to consider slashing taxes on petroleum products if global oil prices surge as a result of escalating tensions in the Middle East.
He argued that such a measure would help shield vulnerable households from the impact of rising fuel prices.
Professor Quartey made the call in an interview with Citi Business News on the sidelines of a public lecture held to commemorate the 70th anniversary celebration of Wesley Grammar School.
“Also for consumers, some of the taxes we have to look at. The tax on petroleum. If oil prices go up so high, we may want to look at the taxes and remove some in order to cushion the poor,” he said.
Peter Quartey also emphasised the need for the country to build buffers to better absorb external shocks, particularly in the energy market, where global price volatility can quickly translate into domestic economic pressures.
“We have seen oil prices initially go up, but they are coming down. We have to study it carefully. But then it tells you that we need to build buffers. BOST was established to have these strategic reserves as buffers in case some of these things happen.
“Unfortunately, we have not been able to do that. This is a wake-up call to start gradually building up buffers. Should this happen, we will be able to cushion ourselves,” he added.
His comments come amid growing concerns over the impact of geopolitical tensions in the Middle East on global crude oil supply and prices.
Already, projections from industry analysts suggest that fuel prices will go up in the second pricing window of March.
