Government Spokesperson Felix Kwakye Ofosu has indicated that the government may be forced to review fuel taxes and levies as rising global oil prices put excessive pressure on Ghanaian consumers.
Speaking in an interview, Mr. Kwakye Ofosu explained that fuel pricing in Ghana is determined by three key factors: international market prices, taxes and levies, and the exchange rate.
He noted that while global oil prices are beyond the government’s control, authorities retain the ability to adjust domestic tax components to cushion the impact on Ghanaians.
According to him, any such intervention would be considered only if external shocks—such as a prolonged conflict in the Middle East—lead to sustained increases in fuel prices on the world market.
“If the world market price rises to a point where it imposes too much of a burden, the government will have to keep the other components flexible to cushion the effect,” he stated.
Mr. Kwakye Ofosu stressed that the potential review of fuel taxes is not automatic but will depend on how geopolitical developments evolve and the extent to which they influence global oil prices.
His comments come amid growing concerns that escalating tensions in the Middle East could disrupt supply chains and drive-up crude oil prices, with ripple effects on fuel costs in import-dependent economies like Ghana.
Fuel prices are already set to rise sharply from April 1, 2026, with petrol and diesel expected to surge at the pumps.
Mr Kwakye Ofosu stressed that any move by the government would be guided by developments on the global market, especially the impact of geopolitical tensions on crude oil prices.
“All considerations are on the table, but it will depend on developments,” he said.
According to him, the decision will ultimately be based on what best cushions consumers while balancing the state’s fiscal needs.
Meanwhile, some Oil Marketing Companies (OMCs) have increased fuel prices ahead of the official April pricing window, following the National Petroleum Authority’s (NPA) introduction of new minimum price floors.
Leading industry player Ghana Oil Company (GOIL) announced that petrol prices have risen from GH¢12.24 to GH¢13.30 per liter, while diesel has risen from GH¢15.69 to GH¢17.10 per liter.
The company indicated in a social media post that the adjustments were influenced by the NPA’s revised price floor directive issued on March 30, 2026.
The official pricing window under Ghana’s deregulated petroleum pricing regime runs from April 1 to April 15, 2026. However, GOIL’s early move suggests OMCs are already aligning with the new regulatory thresholds.
Another major player, Star Oil, has also implemented price increases effective 8:00 a.m. on March 31. Petrol prices have gone up from GH¢12.19 to GH¢13.49 per liter, while diesel has risen from GH¢14.25 to GH¢17.97 per liter.
New Price Floors Introduced
In a circular dated March 30, the NPA announced revised minimum price floors for petroleum products for the upcoming pricing window. The new floors are as follows:
Petrol: GH¢13.30 per liter (up from GH¢11.57)
Diesel: GH¢17.10 per liter (up from GH¢14.35)
Liquefied Petroleum Gas (LPG): GH¢10.71 per kilogram (up from GH¢10.67)
The directive requires all OMCs and LPG Marketing Companies to comply strictly with the set minimum prices.
According to the NPA, the price floors exclude premiums charged by International Oil Trading Companies and the operating margins of Bulk Import, Distribution and Export Companies (BIDECs) and OMCs, which are determined independently.
Implications for Consumers
From April 1, no OMC or LPG Marketing Company will be permitted to sell fuel below the approved price floors. Companies currently pricing below these levels are required to adjust immediately.
As a result:
Petrol cannot be sold below GH¢13.30 per liter
Diesel cannot be sold below GH¢17.10 per liter
The development is expected to lead to uniformity in fuel pricing across the market, with all major OMCs likely to align with the new thresholds.
Industry Outlook
While the NPA maintains that the price floor is necessary to ensure stability in the downstream petroleum sector, some industry players have argued that the policy limits competitive pricing, which could otherwise offer consumers some relief.
With the new pricing regime set to take full effect from April 1, consumers are expected to experience higher fuel costs in the coming weeks as OMCs adjust to the revised framework.
