Businesses, transport operators, and consumers are expected to face less pressure despite the global rise in fuel prices linked to the protracted Middle East crisis.

To cushion the impact of rising fuel prices on consumers, President John Mahama has directed the National Petroleum Authority (NPA), the government regulator of the downstream petroleum industry, to reduce the regulatory margin on diesel by GH¢2.00 per litre for one month.

The directive was announced in a statement dated Monday, August 3, following Cabinet’s approval of the intervention.

“His Excellency the President has directed that, in line with the decision of Cabinet and the successful intervention implemented in April 2026, the regulatory margin on diesel be reduced by GH¢2.00 per litre for one (1) month.

“This temporary intervention is intended to cushion consumers, prevent transport fare hikes, contain inflationary pressures, and mitigate the pass-through effect of higher fuel prices on the cost of living,” parts of the statement read.

The intervention is scheduled to begin on Tuesday, August 4, 2026, and will remain in force for one month unless otherwise reviewed by the government.

The government said it would continue to monitor developments in the international energy market closely and take additional policy measures, where necessary, to protect the interests of Ghanaians and sustain economic recovery.

Govt’s earlier intervention

On April 16, the government introduced a temporary relief measure by absorbing GH¢2.00 per litre on diesel and GH¢0.36 per litre on petrol. The intervention was scheduled to end on May 15.

The measure became necessary after fuel prices surged due to geopolitical tensions in the Middle East and disruptions at the Strait of Hormuz, which pushed up international crude oil benchmarks and premiums.

After the intervention expired, the Chamber of Petroleum Consumers (COPEC) petitioned the government to extend the measure, arguing that the conditions that prompted the intervention were still in place.

Consequently, the government announced an extension of the intervention in a statement dated May 15 and issued by the Ministry of Energy and Green Transition.

The statement, signed by the Ministry’s Spokesperson and Head of Communication, Richmond Rockson Esq., said the decision followed a Cabinet meeting chaired by President John Dramani Mahama to review developments in the international oil market and the impact of global price volatility on domestic fuel costs.

Under the revised intervention, the government absorbed GH¢1.07 per litre on diesel effective May 16, while continuing to provide relief to consumers against rising international fuel prices.

“Following the latest review, the Government has decided to intervene in the price of diesel by absorbing GH¢1.07 per litre effective May 16, 2026. This decision is necessary to ensure the sustainable distribution of petroleum products across the country while continuing to provide relief to consumers,” parts of the statement read.

The statement added that the intervention would remain in place for two pricing windows and would be subject to review by Cabinet and the National Petroleum Authority (NPA) after June 15, depending on global oil market trends and the government’s fiscal space.

“This intervention is expected to last for a period of two pricing windows, subject to review,” the statement added.