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Cutting Fuel Allowances is a Necessary Step Toward Cutting Gov’t Expenditure

Scrapping fuel allowances is not populism, it is leadership in action.

2025 Mid-Year Review: CBOD Calls for Tax Imposition on Marine Gas to Curb Diversion & Protect Consumers
Isaac Kofi Tsoenamawu
Jul 16, 2025

President John Dramani Mahama’s decision to cancel fuel allowances for political appointees has drawn criticism from labour leaders concerned about its impact on productivity. But the move deserves commendation, not condemnation, for its symbolism, timing, and potential to reset priorities in Ghana’s public spending.

The argument that scrapping fuel allowances might hamper the efficiency of appointees is not compelling. In fact, it highlights a broader issue: how dependent high-level government officials have become on state-sponsored privileges, often at the expense of taxpayers and without measurable returns in service delivery.

Joshua Ansah, Secretary General of the Trades Union Congress (TUC), warned that the move could hurt appointees’ effectiveness, asking, “How are they going to work effectively?” But the question really ought to be; Should government productivity hinge on perks? If appointees can’t do their jobs without free fuel, it raises serious concerns about how public service is conceptualized in Ghana.

Government officials are some of the best-compensated individuals in the public sector. Fuel costs, while not negligible, are a fraction of their overall benefits. These are people who are high salary earners, they should be able to fuel their vehicles. Many ordinary public workers, teachers, and nurses commute long distances daily without such benefits. Shouldn’t equity demand that those in power tighten their belts first?

This is not about undermining labour or devaluing professional service. It’s about fairness and accountability. The majority of Ghanaians do not enjoy fuel allowances, yet they bear the brunt of every tax increase, fuel price hike, and economic downturn. Ending unjustified entitlements is a tangible signal that the government is willing to lead by example.

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Moreover, the suggestion that this policy should be viewed in the context of appointees’ terms of service misses the point. The country is facing real fiscal pressures. The Reset Agenda is about reprioritising and cutting costs in areas that do not compromise essential services. Fuel allocations to appointees, often poorly tracked and open to abuse are a logical place to begin.

The government must however be transparent about how the savings will be used. Redirecting funds to sectors like education, health, and infrastructure is essential to ensure this policy is not simply symbolic. But rejecting the decision outright because implementation questions remain is a poor rationale for defending the status quo.

Calls to ensure the cuts do not extend to rank-and-file civil servants are legitimate, and clarity is needed to prevent misapplication. But those who hold the highest offices must be willing to make the first sacrifices. That’s not populism, it’s leadership.

If Ghana is serious about responsible governance, wasteful allowances must go. This move is a start, not a solution. It should be part of a broader legislative reform effort aimed at streamlining public spending and restoring public trust in government. Parliament should act swiftly to codify this into law.

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Next Article EXPLAINER: How CSOs' Coalition Arrived at the GHC1.65p Fuel Price Reduction Proposal Appointees Lose Fuel Benefits as Nurses Await Budget Confirmation of Fuel and Uniform Allowances
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