Petroleum product subsidies in Ghana: Do the rich benefit more than the poor?

This study investigates the direct welfare impact of fuel price increases using Ghana living standards survey data. The study argues that the effect of increase in fuel prices falls on the rich more than the poor, therefore, introducing subsidies to mitigate the impact will benefit the rich more than the poor. The findings suggest that fuel price subsidies are regressive with the rich benefiting three times more than the poor. The study recommends a policy that ensures direct cash transfer to cushion the poor against hikes in fuel prices or social intervention programs that directly impact the poor.