Mahama Orders GH¢2 Diesel Price Cut to Ease Inflation and Shield Consumers

President John Dramani Mahama has ordered a temporary GH¢2.00 per litre reduction in the regulatory margin on diesel, in a move aimed at cushioning consumers from rising fuel costs and limiting the broader impact of higher energy prices on Ghana’s economy.

The directive, announced by the Presidency on Monday, follows a Cabinet decision and builds on an earlier fuel market intervention introduced in April 2026. The reduction will take effect from August 4, 2026, and remain in force for one month, unless the government decides otherwise.

The measure is designed to soften the impact of rising international petroleum prices, which have recently pushed up domestic fuel costs and triggered concerns over transport fares and inflation.

According to the Presidency, the temporary reduction is intended to protect consumers, prevent increases in transport fares, contain inflationary pressures and reduce the pass-through effect of higher fuel prices on the overall cost of living.

The intervention comes at a time when businesses and households have been grappling with renewed increases in fuel prices, which threaten to raise operating costs across key sectors of the economy.

By lowering the regulatory margin on diesel, the government hopes to ease cost pressures on commercial transport operators, logistics companies, manufacturers and other industries that rely heavily on diesel-powered operations.

The Presidency said the government would continue to closely monitor developments in international energy markets and stand ready to introduce additional policy measures where necessary to safeguard the interests of Ghanaians and sustain the country’s economic recovery.

The announcement signals the administration’s willingness to use targeted policy interventions to moderate the domestic impact of global commodity price volatility while supporting macroeconomic stability and protecting household purchasing power.