Mahama’s Reform Agenda: 3 Sectors Set to Gain from Fuel Policy Savings
Ghana to Reinvest Funds from Scrapped Free Fuel for Appointees into Health, Education, and Local Development
In a decisive move toward fiscal responsibility and efficient governance, the government of Ghana has scrapped the long-standing free fuel allocations for political appointees. The savings generated from this cost-cutting initiative will be redirected into critical sectors including health, education, and local government development. This reform, which aligns with President John Mahama’s “Reform and Reset Agenda,” underscores his administration’s commitment to eliminating waste, promoting transparency, and investing in essential public services.
Ending Free Fuel for Political Appointees
Deputy Presidential Spokesperson, Shamima Muslim, announced the policy shift during an interview on JoyFM on Tuesday, July 15, 2025. She explained that henceforth, political appointees will no longer benefit from free fuel for daily or personal use. Instead, fuel provisions will be strictly limited to official assignments, and even those will be governed by clearly defined guidelines.
“There is no more free fuel allocation to political appointees in government,” she stated emphatically. “Fuel will be provided only for strictly regulated, official assignments, not for personal commutes or errands.”
Muslim added that detailed parameters for approved assignments will be communicated to all appointees. These new rules will mirror the Code of Conduct already in place, ensuring accountability and clarity in the use of state-provided resources.
A Broader Reform Strategy
The cancellation of free fuel is part of a broader strategy by the Mahama-led administration to streamline government spending and prioritize public service delivery. The move follows other cost-cutting measures, including:
Cancelling DSTV subscriptions for government officials.
Introducing new regulations around official travel to determine what the government will fund and approve.
“These steps are all aimed at eliminating wastage in the system and ensuring more savings,” Muslim explained.
The government is currently quantifying the expected savings from the fuel directive. While exact figures have not yet been released, the public will be updated in the coming weeks. Muslim emphasized that a directive has already been issued to assess the costs and expected savings from the new fuel policy.
Reinvestment in Priority Sectors
According to the Deputy Presidential Spokesperson, funds saved from the termination of free fuel allocations will be reinvested in critical sectors to improve the lives of ordinary Ghanaians. She outlined three main areas that will directly benefit from this reallocation:
- Health Sector
The health sector is among the top priorities for reinvestment. Beyond President Mahama’s signature “Mahama Care Programme,” Muslim said the government is committed to strengthening the entire healthcare infrastructure.
This renewed focus includes expanding healthcare access, improving hospital facilities, and addressing long-standing systemic issues such as understaffing, inadequate medical supplies, and poor infrastructure, especially in rural and underserved communities.
- Education Sector
Education has also been earmarked as a key beneficiary of the cost savings. Muslim highlighted a significant investment in the Ghana School Feeding Programme as one of the direct outcomes of the new fiscal prudence.
“As we speak, 600 million Ghana Cedis has been disbursed to schools for feeding since the beginning of the year,” she revealed. This financial support is critical to ensuring students in public basic schools receive nutritious meals, which in turn improves school attendance and academic performance.
By prioritizing education funding, the government aims to create an enabling environment for quality learning, ultimately contributing to national development.
- Local Government and Decentralisation
Another major area of investment is local governance. Muslim disclosed that 80% of certain budgetary allocations are now being channeled directly to the local assemblies. This move is in line with Ghana’s decentralisation policy, designed to empower district and municipal assemblies to take charge of development at the grassroots level.
“We would hear more details about how 80% allocation has been made to the assemblies,” she said, noting that further information will be presented in the upcoming mid-year budget review scheduled for July 24.
Transparency and Accountability
Muslim assured the public that all funds saved from the fuel policy and other austerity measures will be managed transparently and in accordance with existing financial regulations.
“Because of the Public Finance Management Act, there are more stringent ways of tracking what goes into the consolidated fund and how funds are used,” she said, referencing tools like the Electronic Management Reporting (EMR) system for financial tracking.
This assurance is aimed at reinforcing public confidence in the administration’s ability to manage national resources effectively.
Long-Term Commitment to Fiscal Discipline
Importantly, Muslim emphasized that the fuel directive is not a temporary policy but a long-term shift toward sustainable governance.
“This new directive is intended to be a lasting measure,” she explained. The approach reflects a sustained effort by the Mahama government to reduce state expenditure and redirect resources where they are most needed.
The policy complements other macroeconomic strategies, including:
The stabilization of the Ghanaian cedi.
Over $5 billion in inflows from Gold Board operations since January 2025.
Ongoing reforms under the IMF programme aimed at restoring macroeconomic stability and ensuring debt sustainability.
What to Expect Next
All eyes are now on the Finance Minister’s upcoming mid-year budget review, which is scheduled for July 24, 2025. The review is expected to provide comprehensive details on:
The exact amount of savings from the fuel and DSTV policy cuts.
Specific allocations to health, education, and local government.
Broader economic indicators showing the impact of the reform agenda.
The government’s commitment to prudent resource management and its focus on development-oriented reinvestment signals a shift towards a more responsible and citizen-centered governance model. As the reforms continue to unfold, Ghanaians will be watching closely to see how these savings translate into real improvements in their daily lives.
