KEY POINTS
- President Mahama has cancelled fuel allowances and allocations for all political appointees to cut government spending.
- The directive is part of wider cost-saving measures including a ban on Business Class travel and reduced government perks.
- Critics and supporters alike see the move as largely symbolic but potentially effective in restoring public trust and demonstrating leadership accountability.
President John Dramani Mahama has announced a sweeping directive to eliminate fuel allowances and fuel allocations for all political appointees, signaling a renewed effort by his administration to rein in public spending and project fiscal discipline amid ongoing economic challenges.
The immediate cancellation, which took effect on July 15, 2025, is part of a broader set of austerity measures being implemented by the Presidency to curtail what it describes as excessive government expenditure and redirect limited national resources toward developmental priorities such as education, healthcare, and infrastructure.
In a statement signed by the Spokesperson to the President and Minister of Government Communications, Felix Kwakye Ofosu, the government made clear that leadership must exemplify sacrifice in these times of economic strain.
“We are taking deliberate steps to demonstrate that governance is about service and not luxury. Public funds must be protected and channeled into sectors that serve the majority,” Ofosu stated.
Cost-cutting measures take centre stage in Mahama’s governance
The cancellation follows earlier budget-tightening initiatives, including a reduction in the number of presidential staffers and ministers, a ban on Business Class travel for appointees, and the cancellation of satellite TV subscriptions in government offices.
“These are not symbolic moves. They represent a mindset shift in how public office should be conducted—with modesty, accountability, and stewardship,” Ofosu said, emphasizing the administration’s commitment to financial prudence.
The government estimates that discontinuing fuel benefits alone could save millions of cedis annually—funds that will now be diverted to support underfunded sectors. Though the exact savings were not disclosed, the Office of the President indicated that ministries and agencies have been instructed to comply without delay.
Public reactions have been mixed. Many citizens have praised the move as a timely and moral decision. However, others have called for deeper reforms. The Member of Parliament for Akuapim North, Sammy Awuku, noted in an interview that “the closure of fuel depots at the Osu Castle and Jubilee House would give true weight to the President’s directive.”
Observers suggest that while the financial impact may be relatively modest in macroeconomic terms, the political and psychological effect could be far-reaching, encouraging citizens to buy into the spirit of shared sacrifice.
This isn’t the first time the Mahama administration has signaled a shift in priorities. Earlier this month, Energy and Green Transition Minister John Jinapor announced a new directive requiring all state institutions to transition to prepaid electricity meters—part of a national strategy to reduce waste and improve energy efficiency.
Moreover, government ministries have been instructed to seek strict approval for all foreign travel, while Business Class privileges have been revoked in an effort to minimize operational excesses.
“These actions are meant to rebuild public trust,” said Ofosu. “They are hard decisions, but they are necessary.”
Analysts suggest that with inflation pressures still high and revenue streams strained, Mahama’s measures reflect a broader attempt to stabilize the economy without resorting to external debt.
The impact of these reforms will likely become more evident in the months ahead, particularly as the government prepares its 2026 fiscal plan and faces renewed public scrutiny over how national resources are allocated.
