Tax analyst Francis Timore Boi is urging the government to establish clear parameters for fuel price interventions, cautioning that repeated subsidies could undermine fiscal sustainability and eventually force the introduction of new taxes to offset mounting costs.

His comments come after government announced a GH¢2-per-litre relief on diesel, marking the second fuel price intervention in four months. The measure is intended to cushion consumers, prevent increases in transport fares and help keep inflation under control.

Speaking to Citi  Business  News, Mr. Timore Boi acknowledged the short-term economic benefits of the intervention but argued that government must define the conditions under which it will step into the fuel market.

He proposed a rules-based framework that links intervention to global crude oil prices.

“Can we limit the number of times or can we set a threshold for government intervention? For example, if crude oil reaches around 120 dollars per barrel, government can then step in to cushion consumers,” he said.

According to him, the absence of a clearly defined policy risks creating expectations among transport operators and consumers that government will always absorb increases in fuel prices, making future reforms politically and economically difficult.

“My principal concern has always been whether this approach is fiscally sustainable and also the expectation it creates,” he stated.

Mr. Timore Boi further pointed out that when the first intervention was introduced in April 2026, crude oil traded at approximately 101 dollars per barrel. Today, prices have eased to around 87 dollars per barrel, yet government has announced another round of fuel price relief.

He questioned how policymakers would respond if international crude prices were to climb significantly in the months ahead.

“If crude subsequently increases to around 120 dollars per barrel or beyond, will government continue to absorb two cedis per litre, increase the relief, or allow the full cost to be passed on to consumers?” he asked.

The tax expert warned that sustained fuel subsidies could place considerable pressure on public finances, potentially creating the need for additional revenue measures in the future.

Drawing lessons from the COVID-19 period, he noted that emergency fiscal interventions were eventually followed by the introduction of the COVID-19 Health Recovery Levy to help finance government expenditure.

“Repeated interventions accumulate fiscal costs, and those costs may later be presented as justification for introducing a new tax,” he cautioned.

While acknowledging that consumers naturally welcome measures that reduce fuel prices, Mr. Timore Boi stressed that government must balance short-term economic relief with long-term fiscal discipline.

He maintained that without clearly defined intervention limits, temporary relief measures could evolve into recurring fiscal obligations that ultimately shift the burden back onto taxpayers.