Accra, July 15, 2025 – In a bold austerity-driven move, President John Dramani Mahama has immediately suspended fuel allowances and fuel allocations for all political appointees, including ministers and directors appointed by the NDC-led administration. The decision was announced in an official statement issued this morning, signed by Presidential Communications Minister Felix Kwakye Ofosu.
President Mahama emphasized that “leadership must also bear its part of the sacrifices it is calling on the people to make.” The cancellation of fuel perks is part of a broader package of cost-cutting measures engineered to ensure prudent use of public funds and redirect savings toward essential national priorities
Reduction in the size of government: The number of ministers and Presidential Office staff have been trimmed.
Abolition of satellite TV subscriptions: DSTV services for government offices have also been discontinued
In May 2024, Mr. Mahama—then NDC flagbearer—had pledged to eliminate non-essential perks such as free DSTV, utilities, and fuel for appointees upon assuming office. Today’s move is the realization of that promise.
Redirecting Savings to Priority Sectors
The Presidency affirmed that resources saved from fuel and utility allowances will be diverted to critical priorities, such as healthcare, education, and infrastructure development. Though it has not yet established a specific savings estimate, similar initiatives—like imposing a GH₵1 fuel levy—were projected to raise approximately GH₵5.7 billion annually to tackle energy sector debts.
The austerity initiative has drawn attention from civil society and opposition groups, especially as the government navigates economic headwinds. Critics have called for greater transparency on how exactly the redirected funds will be spent . With controls reportedly in place—such as restricting access to fuel only to those using government vehicles for official duties—supporters see this decision as emblematic of a more frugal and accountable governance approach.
Measure
Details
Fuel Allowance
Suspended for political appointees effective immediately
Other Cutbacks
Satellite TV and utility allowances axed
Policy Goal
Fiscal discipline, redirect funds to public services
Political Context
Delivers on 2024 campaign promise
Next Steps
Monitoring the use of saved funds, ensuring transparency
This decision marks a continuation of Mahama’s austerity framework, which began rolling out in 2024. Key talking points:
Contrast with previous government spending habits.
Place within the broader narrative of fiscal consolidation—alongside measures like the GH₵1 fuel levy aimed at stabilizing the public finances.
Analyze how the savings may impact budget allocations, especially in essential public sectors.
Consider potential political responses, particularly from opposition and civil society.
