The government has directed the Ministers for Finance and Energy to immediately remove certain taxes and margins on fuel to help reduce pump prices and cushion consumers against recent hikes.
The announcement was made by Minister of State for Government Communications, Felix Kwakye Ofosu, after a Cabinet meeting held on Thursday, April 9, 2026, to assess the impact of global developments on Ghana’s economy.
According to Kwakye Ofosu, the decision follows sharp increases in fuel prices caused largely by geopolitical tensions in the Middle East, particularly the conflict involving the United States, Iran, and Israel, which has disrupted global oil supply chains.
He explained that although Ghana’s recent economic gains, including the appreciation of the cedi and easing inflation, have helped cushion some of the impact, fuel prices have still risen over the past two pricing windows.
“These increases, if not checked, could spill over into transport fares and the prices of other goods and services, ultimately affecting the cost of living,” he said.
Kwakye Ofosu stated that Cabinet has directed the Ministers for Finance and Energy to take immediate steps to reduce fuel prices by removing some taxes and margins on fuel.
“The first directive that Cabinet has issued is that the finance and energy ministers should take immediate steps to reduce the price of fuel through the removal of some taxes and margins on fuel, effective the next pricing window, which is about a week from today. And this is supposed to be done as soon as possible,” he added.
He attributed the price hikes to disruptions in global oil supply, particularly restrictions along the Strait of Hormuz, a critical route through which a significant portion of the world’s crude oil is transported.
The situation has resulted in higher crude oil prices, increased insurance premiums, and rising freight costs.
Despite these external challenges, the Minister noted that Ghana’s current economic stability has helped keep fuel prices relatively lower than levels recorded during previous global crises, such as the Russia-Ukraine war.
He emphasized that the government remains committed to implementing measures that will ease pressure on households and prevent further increases in the cost of living.
The removal of the specified taxes and margins is expected to take effect in the next fuel pricing window.