Fuel allowance scrapped: Gov’t to save GH¢121m in 4 years – Dr Sharif Khalid

The government stands to save over GH¢121 million in four years following the cancellation of fuel allowances for political appointees, according to Dr. Sharif Mahmud Khalid, Economic Policy Advisor to the Vice President.

Speaking on PM Express on JoyNews, Dr. Khalid explained that the projected savings were based on conservative estimates, taking into account typical fuel usage by government vehicles and prevailing petrol prices.

“Using GOIL’s current figures, I calculated fuel consumption for about 1,000 vehicles, 500 saloon cars and 500 4x4s, with an average of 50 litres per week per vehicle,” he said.

Although the actual government fleet may be larger, Dr. Khalid used a baseline of 1,000 vehicles to keep the estimate modest.

“Even with these assumptions, monthly savings come to around GH¢2.5 million, which adds up to GH¢30 million annually, and GH¢121 million over a four-year term,” he noted.

While he didn’t specify how the government would spend the savings, Dr. Khalid provided tangible examples of what the amount could fund:

1. 81 maternity blocks (estimated at GH¢1.5 million each)
2. 303 CHPS compounds
3. 121 six-unit classroom blocks

“These are the kinds of social investments this policy can enable,” he said, stressing that the conversation should move beyond political optics to the real economic impact.

Dr. Khalid urged critics to consider the broader fiscal benefits of such measures rather than dismissing them as public relations stunts.

“This is about responsible spending. If implemented consistently, it’s a solid step toward better fiscal discipline,” he concluded.