Fossil-fuel subsidy reforms offer opportunities to develop social policies that effectively address the needs of low-income groups – however, only if balanced carefully! The decision of the Ghanaian government to face out fossil fuel subsidies as of June this year has sparked controversial discussions on the socio-economic consequences of rising petrol prices for the country’s development. The international consensus is built around the perception that fossil-fuel subsidies mainly benefit the better-off and undermine socio-economic strategies that could truly benefit the poor. In the last weeks, price increases in the petrol sector have resulted in rising (public) transport fees, hitting the poorest the hardest. At the backdrop of such developments, government efforts to accompany such far-reaching measures with social reforms, seem indispensable. The following article by the Institute of Development Studies provides a comprehensive overview of previous fossil-fuel subsidy reforms in Ghana and their socio-economic implications.
Posted on: Thu, 25 Jul 2013 09:34:40 +0000
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