As part of broader efforts to reduce government expenditure and promote fiscal discipline, President John Dramani Mahama has, with immediate effect, ordered the cancellation of the payment of fuel allowances and the allocation of fuel to all political appointees.
Minister for Government Communications and Presidential Spokesperson, Felix Kwakye Ofosu, made this announcement in a statement issued on Tuesday, July 15, 2025.
The statement reads that the government is taking this big step as part of a wider cost-cutting strategy under the Mahama administration’s Reset Agenda, aimed at channeling public funds into priority sectors and essential national development needs.
“The President believes that leadership must also bear its part of the sacrifices it is calling on the people to make,” the statement said.
The cancellation comes after previous austerity measures that included cutting back on ministerial appointments, shrinking the size of the government, and canceling satellite TV subscriptions for government buildings, including the presidency.
In April 2022, the government cut fuel allocation coupons for all government appointees by 50% as part of a cost-cutting strategy. The finance ministry announced the move at a press conference in Accra, stating it will affect heads of government institutions, including State-Owned Enterprises (SOEs), and ensure efficient use of energy resources.
The government has also imposed a complete moratorium on the purchase of imported vehicles for the rest of the year, affecting all new orders, especially 4-wheel drives.
This was aimed at reducing the total vehicle purchases by the public sector by at least 50% for the stipulated period. The government also imposed a moratorium on foreign travel, except for pre-approved critical or statutory travel, and a moratorium on the establishment of new public sector institutions by the end of April 2022.
