By Boakye Stephen, Kumasi, Ghana | Reporting for Ghanaian News Canada
9/04/2026
The CEO of Dalex Finance, Joe Jackson, has rejected calls for fuel tax cuts and subsidies, warning that such measures could worsen Ghana’s economic outlook.
Speaking on PM Express on Joy News, he cautioned that rising energy costs could trigger broader inflationary pressures, particularly in food prices.
“Listen, the energy prices are but one of the major effects that we could have. The bigger challenge would be food price inflation, because the cost of food, even locally grown food, has embedded in it up to 40% of logistics costs,” he said.
He warned that increases in fuel and transport costs would inevitably feed into food prices:
“So if, the if, if the cost of fuel and logistics go up, we’re going to be hit eventually. Where to hit us hardest will be food.”
Mr Jackson noted that both local and imported food would be affected:
“Now, even if the food was imported, remember that the cost per container has gone up. Insurance and transportation costs have gone up. So any which way, we are between a rock and a hard place where food prices are concerned.”
He added that recent low inflation could amplify the perceived shock:
“And the worst part is the very low levels of inflation we’ve been having over the last few months will make the way we feel this effect worse…”
He warned against panic-driven policy responses:
“The biggest danger we have now is that there is a possibility of an impending crisis, but the crisis is not there yet, and we should avoid overreacting.”
“We should avoid this effect… we should go at it with a scalpel, not with a sledgehammer…”
He stressed that poor policy choices could worsen the situation:
“If we lose our discipline… the pain… could be worse than the shock itself.”
Outlining his recommendations, he said:
“Number one, protect households, not prices… blanket subsidies… will be expensive… distorting… regressive.”
“Instead, government should expand tip-free support for the most exposed households…”
He acknowledged implementation challenges:
“It’s going to be difficult, but we have to make an attempt…”
He further explained the root of food inflation:
“As food inflation rises… transport, storage and wholesale distribution have become more expensive.”
He proposed:
“Set up a food logistics Task Force…”
He cautioned:
“Please, we should not react with export bans, price controls…”
Rejecting fuel tax suspension:
“No, I’m not in favour… it will distort… expensive… regressive.”
“Regressive means the poor will benefit least…”
He concluded:
“Let’s keep our macroeconomic stability intact…”
Analysis & Commentary | Boakye Stephen
This is arguably the most intellectually grounded economic intervention in Ghana’s current discourse. Joe Jackson shifts the conversation from political convenience to economic truth.
His emphasis on logistics exposes a hidden reality: fuel is not the crisis, distribution is. By showing that up to 40% of food cost is logistics-driven, he reveals that Ghana’s inflation is structurally embedded, not episodic.
Philosophically, his argument dismantles populism. Subsidies are not kindness, they are misdirected relief mechanisms that reward consumption without solving inefficiency.
His “scalpel vs sledgehammer” metaphor should become policy doctrine. Precision governance is the only sustainable path in fragile economies.
