President John Dramani Mahama has directed a temporary GH¢2.00 per litre reduction in the regulatory margin on diesel, following recent increases in fuel prices by oil marketing companies (OMCs) driven by rising global oil prices and a weaker cedi.
The directive, announced by the Presidency on Monday, comes just days after several OMCs began adjusting pump prices under the industry’s bi-weekly pricing mechanism. The intervention will take effect on Tuesday, August 4, 2026, and remain in force for one month unless reviewed earlier by the Government.
According to the Presidency, the temporary measure is intended to cushion consumers, prevent increases in transport fares, contain inflationary pressures and reduce the impact of higher fuel prices on the cost of living.
The announcement follows upward fuel price adjustments led by Star Oil on August 1, which increased the price of petrol to GH¢14.53 per litre from GH¢14.47, while diesel rose sharply to GH¢18.77 per litre from GH¢17.67.
Industry players had warned that more OMCs would raise prices in the current pricing window, with some expected to sell petrol for around GH¢15.23 per litre and diesel at GH¢17.45 or above GH¢18.00.
According to the Chamber of Oil Marketing Companies (COMAC), the latest fuel price increases have been driven by a sharp rise in international crude oil and refined petroleum product prices. Average crude oil prices increased by 23.25% during the review period, while diesel prices rose by 24.84% and petrol by 12.58%.
COMAC attributed the surge to heightened geopolitical tensions, particularly developments involving the United States and Iran, renewed attacks on oil tankers, continued restrictions around the Strait of Hormuz and higher shipping risks. The depreciation of the Ghana cedi against the US dollar also increased the cost of importing petroleum products.
The Presidency said Government would continue to monitor developments in the international energy market and implement additional policy measures where necessary to protect consumers and support Ghana’s economic recovery.
