President John Dramani Mahama has directed a GH¢2.00 per litre reduction in the regulatory margin on diesel to cushion consumers against surging fuel pump prices, effective Tuesday, August 4, 2026.
The directive was announced Monday by the Presidency Communications Office and signed by Minister Felix Kwakye Ofosu and will last for a month before it will be reviewed.
The move forms part of the government’s aims to cushion consumers, hold back planned transport fare hikes, curb inflation, and soften the blow from higher global fuel costs.
The statement issued by the presidency read, “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 GHS 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.
This directive shall take effect from Tuesday, 4 August 2026, and shall remain in force for one month, unless otherwise reviewed by Government.
The Government will continue to monitor developments in the international energy market closely and take additional policy measures, where necessary, to protect the interests of the Ghanaian people and sustain economic recovery”.
Meanwhile, some Ghanaians reacting to the development stated, “After doing something then u pple will pass back, and release statements just calm us down but brother the gospel truth is that the economy is really bad. We are quiet because we are still watching what u guys got, but still norrr nothing is changing”.
“This will come as a loss of revenue to the government, yet because the NDC government thinks about the citizens of Ghana, it has taken this bold and painful decision to help ease the pressure.
God bless you, Mr. President”, a netizen added.
One X user added, “To the Government of Ghana and my government:
While I welcome the temporary GHS 2.00 per litre reduction in diesel prices, I would like to ask whether we can take a more sustainable approach. Instead of relying on temporary interventions, can’t the government consider reviewing and reducing some of the taxes and levies on petroleum products? Lowering the tax burden could provide longer-term relief for consumers, help reduce transport costs, ease inflationary pressures, and support businesses and households across the country.
A sustainable solution will benefit all Ghanaians, not just for one month, but for the long term’.
“GOOD MOVE because the price of diesel (movement of produce) has a significant impact on the general price level. BAD MOVE because, from now on, the government (as opposed to the world market price for fuel) owns the domestic price of fuel”, another netizen added.
One X user noted, “But didn’t they just add a petroleum tax that increased the taxes at the time frim .23 cedis to around 1.9 cedis? Is this really considered a subsidy if they already put a tax to basically cover it?”.
Meanwhile, Collins Adomako-Mensah, the Deputy Ranking Member on Parliament’s Energy Committee, has reminded the John Mahama government that its decision to increase the fuel oil levy contradicts its promise to provide tax relief and ease the financial burden on Ghanaians.
According to Collins Adomako-Mensah, Parliament’s approval of amendments to the Energy Sector Levies framework increased the fuel oil levy from GH¢0.24 per litre to GH¢1.93 per litre, a departure from the government’s assurances to reduce the tax burden on citizens.
Adomako-Mensah raised concerns about the manner in which the amendment was brought before Parliament.
He alleged that the Finance Minister has repeatedly relied on Certificates of Urgency and the final sitting days of Parliament to introduce tax-related measures.
Adomako-Mensah further accused the government of relying on its majority numbers in Parliament to push through measures without sufficient engagement and scrutiny.
See the post below:
President Mahama orders GHS 2 reduction in diesel price. pic.twitter.com/gzl8pum6Md
— Felix Kwakye Ofosu (@FelixKwakyeOfo1) August 3, 2026
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