President John Mahama’s recent decision to eliminate fuel allowances for all political appointees could save Ghana more than GH¢121 million over the next four years, according to Dr. Sharif Mahmud Khalid, Economic Policy Advisor to the Vice President.
Speaking on JoyNews’ PM Express, Dr. Khalid explained that the projected savings are based on conservative estimates derived from current fuel consumption trends and petrol prices at GOIL filling stations.
“In the studio, I did a rough calculation using GOIL’s pump prices,” he said. “I considered saloon cars, 4x4s, and cross-country vehicles—assuming 500 of each type, with weekly fuel usage of around 50 litres for saloon cars per appointee.”
Although the government’s vehicle fleet likely exceeds 1,000, Dr. Khalid used this rounded figure to keep the estimate modest and realistic.
“Crunching the numbers, the government could save about GH¢2.5 million monthly and over GH¢30 million annually,” he stated. “That totals to over GH¢121 million across four years.”
Dr. Khalid clarified that he was not outlining specific government plans for the savings but gave illustrative examples of what such an amount could fund in terms of public infrastructure.
“For instance, a maternity block costs around GH¢1.5 million, so we could potentially build about 81 of them,” he said. “Alternatively, the same funds could construct approximately 303 CHPS compounds or 121 six-unit classroom blocks, assuming each costs GH¢1 million.”
Addressing skepticism around the policy, Dr. Khalid said it’s important to focus on the broader potential impact rather than dismissing it as mere public relations.
“I’m not saying this is exactly what the government intends to do,” he emphasized. “The point is to show the bigger picture of what we could achieve if we stay committed to this cost-saving measure.”
