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The Alliance for Accountable Governance (AFAG) is strongly opposed to the clandestine attempts by government to test public reaction on possible withdrawal of fuel subsidies. Government must note that, there is a political risk to this unthinkable decision in the midst of the current precarious household economy of the Ghanaian. Besides, Government has not been able to account for some unrealistic levies (on petroleum and its derivatives) and where they have technically been efficiently allocated. Our Argument: � We strongly argue that, the current pricing of petroleum is not realistic in the midst of a paralyzed Tema Oil Refinery (TOR) which until 2009 was working rather effectively. How on earth can we trust the pricing of oil marketing companies (OMCs) who predominantly are the current importers of already refined crude to Ghana? Or this are deliberate attempts to ostensibly create jobs for the men behind? We are not against OMC operations, but rather the mandate to import REFINED crude. OMCs elsewhere operate as cartels, and the public will lose the fight as they hold our fate now on fuel pricing and possible fixing. � There is lack of transparency on the use of funds generated from some levies such as; social impact mitigating levy (SIML), road fund, the ghost TOR debt recovery levy, other levies that enure to the benefit of the mining sector etc we are however aware that, in 2006 when the SIML was introduced, the then government argued that, it was being allocated for the best reasons as: ■Fees for state-run secondary and primary schools were removed; ■A price ceiling was placed upon fares for public transport; ■The number of public buses increased; ■Spending on the existing Community Health Compound Scheme, which focuses upon delivering healthcare to the poorest areas, was increased; ■Greater support was given to an existing rural electrification scheme; ■The minimum wage increased from US$ 1.24 to US$1.50 (Coady et al. 2006; Laan et al. 2010). � In a country where the public sector is the predominant employer, no one person has enjoyed realistic a realistic wage or salary. Owing to this stalemate, the private sector (with their huge profits) in this country except for expatriates have not paid Ghanaians any competitive wages/salaries. The current disposable income of the Ghanaian begs to be saved. In this regard, the income effect of a full cost recovery has a dire consequence, and doing this at the instance of the IMF is a wicked betrayal of the soaring economic plight of the Ghanaian. Our Challenge: � Government must initiate extensive stakeholder consultative processes and a national debate on the removal of fuel subsidies � Leadership by example; government must wean all MDAs off the tax payer�s spending on their fuel use. The poor also can no longer afford to pay for their fuel use. � Government must cut down wasteful appointments and retrieve all �crony payments�(judgment debts) forcefully but within the legal remit of the law Message to IMF: The double standards of the IMF in fuel pricing cannot go untouched. We wish to remind the IMF boss that, France her home country subsidize fossil fuels to the tune of a whooping 2.6 billion Euros. Also OECD statistics reveal that, Germany provided �7.4bn of fossil fuel subsidies in 2010, followed by the UK with �4.5bn, Spain and Italy with �1.5bn. Additionally in France, the government provides annual rebates to taxi drivers. If France a developed country can go pro-poor, then the argument on equity holds for Ghana which is poorer and developing. The IMF�s supervisory role should rather focus on ensuring efficiency in the public sector, and not taking decisions that will marginalize the poor. Our Position: If subsidies were to be removed, a stronger and a more coherent case for their elimination would have to be made to the public in order to gain legitimacy. Labour does not suffer money illusion, and thus, we expect government to note ahead; the harsh inflationary effect of fuel price increases on goods and services including the tendency of labour unrest coupled with mass actions of which AFAG�s role is inevitable. AFAG will like to state clearly, it is not against any attempt to remove fuel subsidies, however the current household economy is precarious and Ghanaians cannot sustain the harsh argument of realistic pricing of fuel for now. SIGNED: Dr. Nana Ayew Afriyie Davis Opoku Ansah Arnold Boateng Henry Haruna Asante Kwaku Ohene Djan