Government Intervenes to Stabilize Fuel Prices as NPA Caps Diesel Below GH¢20 per Litre

Fuel prices at Ghanaian pumps are expected to remain stable for at least the next two weeks following a strategic government intervention aimed at shielding consumers from rising international costs. The directive requires both the state-owned Tema Oil Refinery (TOR) and the Sentuo Oil Refinery to maintain their current selling prices to Oil Marketing Companies (OMCs). This move is intended to provide immediate relief to motorists and businesses, ensuring that the cost of transportation and basic goods does not surge further during the current pricing window.

According to the National Petroleum Authority (NPA), these measures are specifically designed to keep diesel prices below the GH¢20 per litre threshold throughout the first pricing window of October. NPA Chief Executive Godwin Edudzi Tamakloe revealed that without this intervention, consumers could have seen diesel prices soar to as high as GH¢22 per litre. To prevent this, the government has suspended the GH¢1 Energy Sector Levy on diesel for the month and is maintaining an existing GH¢2 subsidy on the product. These decisions were finalized during an emergency meeting convened to address the domestic fallout from rising global energy costs.

Dr. Riverson Oppong, Chief Executive of the Chamber of Oil Marketing Companies (COMAC), highlighted the critical role of the Supplier Reference Exchange Rate (SREF) in these pricing dynamics. He noted that while Ghana’s pricing model remains fundamentally cost-reflective—factoring in taxes, levies, and exchange rates—the current government directive effectively delays immediate hikes that would otherwise be passed directly to the consumer. Dr. Oppong emphasized that as long as the SREF remains constant and refineries adhere to the price freeze, the immediate pressure on the public will be significantly alleviated.

This intervention follows a challenging period for Ghanaian motorists, who have faced nine fuel price hikes within a seven-month span in 2026. While the current measures offer a temporary reprieve, industry experts and the government will conduct further reviews to evaluate the long-term sustainability of these subsidies and price controls. For now, the stability provides a necessary buffer for public transport operators and the broader business community, though the outlook remains closely tied to the stability of the cedi and international market trends.