The John Mahama government, according to reports, has decided to extend the GH¢2 per litre reduction in the regulatory margin on diesel for the next pricing window to cushion consumers.
Reports suggest the decision follows growing concerns over the expected increase in fuel prices at the pumps from the first pricing window of September.
It will be recalled that the GH¢2 per litre reduction intervention was originally introduced as a temporary measure for two pricing windows, and was expected to expire at the end of August.
However, the Mahama government has opted to maintain the reduction at least for the next pricing window, preventing the full GH¢2 per litre regulatory margin from being restored to diesel prices.
The move comes as relief to motorists, transport operators and businesses, particularly as diesel prices are already selling at around GH¢17 per litre.
In related news, the Chamber of Petroleum Consumers Ghana (COPEC) has announced that fuel prices at the pumps are expected to rise marginally from Tuesday, September 1, 2026.
According to COPEC, the projected increases are expected to affect petrol, diesel and liquefied petroleum gas (LPG).
They detailed that the adjustments are largely driven by movements in international petroleum product prices, despite a recent appreciation of the Ghana cedi against the US dollar.
COPEC, in its analysis, disclosed that global crude oil prices fell marginally from $90.41 to $89.30 per barrel during the current pricing window.
“The cedi also strengthened against the dollar, with the average interbank rate improving from GH¢11.800 to GH¢11.5166 per dollar.
That represents an appreciation of about 2.39%.
Despite these developments, COPEC says changes in the Free-On-Board (FOB) prices of refined petroleum products are expected to push pump prices higher.
Petrol is projected to sell at about GH¢16.21 per litre, representing an estimated 5% increase from the current mean pump price of GH¢15.43.
Diesel is also expected to rise to approximately GH¢17.61 per litre.
That would represent an estimated 2.58% increase over the current mean price of GH¢17.17 per litre.
LPG is similarly projected to record a marginal increase, with COPEC estimating a price of approximately GH¢14.19 per kilogramme”, a JoyNews report stated.
Meanwhile, the International Monetary Fund (IMF) has warned the Mahama government that its recent fuel subsidy could damage Ghana’s fiscal gains.
According to the IMF, the recent fuel subsidy measures must remain temporary and carefully targeted not to undermine Ghana’s fiscal gains.
The IMF warning was contained in its Staff Report submitted to the Fund’s Executive Board on July 27 ahead of Ghana’s Sixth Review under the Extended Credit Facility (ECF) programme.
The IMF Staff Report acknowledged Ghana’s improving macroeconomic outlook but warned that fuel subsidies should not become a permanent policy tool.
Parts of the report stated, “The recent fuel subsidy measures must be temporary and well targeted.”
“Ghana’s near-term growth and inflation outlook is favourable but subject to elevated downside risks.”
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