By Dominic Hlordzi
The Institute for Energy Security (IES) has commended President John Dramani Mahama for directing a GH¢2 reduction in the price of diesel, describing the move as a timely intervention to cushion consumers against the latest surge in fuel prices.
The reduction, which takes effect on Tuesday, August 4, 2026, follows concerns raised by the Institute and other stakeholders after fuel prices increased at the pumps at the start of the first pricing window of August.
In a statement issued by the Minister for Government Communications and Spokesperson to the President, Felix Kwakye Ofosu, government said the decision was taken in line with Cabinet’s directive to mitigate the pass-through effect of rising fuel costs on the overall cost of living.
Under the directive, the temporary price relief will apply exclusively to diesel for one month, unless otherwise reviewed by the government. There will be no corresponding reduction in the price of petrol.
Government said it will continue to monitor developments in the international energy market and take additional policy measures where necessary.
According to the statement, the intervention is intended to prevent increases in commercial transport fares, contain mounting inflationary pressures, and provide immediate financial relief to businesses and households.
It is the second time this year that the government has stepped in to cushion consumers against rising petroleum prices driven by geopolitical tensions in the Middle East and sustained pressure on the Ghana cedi.
IES had earlier called on the government to intervene, warning that the latest fuel price increases were placing enormous financial pressure on households, businesses and transport operators across the country.
Speaking to Energy News, Research and Policy Analyst at the Institute for Energy Security, Smith Boahene welcomed the government’s decision, describing it as a swift response to the concerns raised by the Institute and the broader challenges confronting petroleum consumers.
The Institute had warned that sustained increases in petroleum prices would lead to higher transport fares, food prices, production costs and inflation, further eroding the purchasing power of Ghanaians while increasing the cost of doing business, particularly for small and medium-sized enterprises.
While acknowledging that domestic fuel prices are influenced by international crude oil prices, exchange rate movements and Ghana’s petroleum pricing framework, IES maintained that the government cannot remain passive when external market shocks threaten the welfare of citizens and the stability of the economy.
The Institute also urged the government to sustain efforts to stabilise the Ghana cedi, noting that exchange rate depreciation remains one of the key drivers of fuel price increases in the country.
IES believes continued collaboration between government and industry stakeholders will be essential to protecting consumers and maintaining stability in Ghana’s downstream petroleum sector.
