With commercial transport operators threatening to increase fares over the steady rise in fuel prices, President John Dramani Mahama has stepped in with a temporary measure to reduce the cost of diesel by GH¢2.00 per litre.
The intervention, announced by the Presidency yesterday, is intended to shield commuters and businesses from the impact of rising fuel prices, which have fuelled concerns over higher transport fares and an increase in the cost of living.
The directive follows a Cabinet decision and takes effect from Tuesday, August 4, 2026 (today) for an initial period of one month, unless the government decides to extend or review it.
According to the Presidency, the reduction will be achieved through a cut in the regulatory margin on diesel, similar to an intervention introduced in April this year.
The government’s decision comes as the Ghana Private Road Transport Union (GPRTU) prepares to review transport fares following successive upward adjustments in prices at the pumps.
The recent increases have been attributed largely to developments on the international oil market, where geopolitical tensions in the Middle East have pushed crude oil prices higher.
Officials say the temporary relief is designed to cushion consumers, avert an increase in transport fares, contain inflationary pressures and minimise the effect of rising fuel costs on the prices of goods and services.
By lowering diesel prices, the government hopes to ease pressure on commercial transport operators, whose operating costs have risen sharply in recent weeks, while also preventing additional burdens on households already grappling with the rising cost of living.
In its statement, the Presidency said the government would continue to monitor developments in the global energy market and introduce further policy measures where necessary.
“The Government will continue to monitor developments in the international energy market closely and take additional policy measures, where necessary, to protect the interests of the Ghanaian people and sustain economic recovery,” the statement said.
The announcement signals the government’s determination to prevent external shocks from derailing Ghana’s economic recovery, particularly as fuel prices remain vulnerable to global market developments.
Attention will now turn to the GPRTU and other transport operators to see whether the temporary reduction in diesel prices will be enough to forestall the planned increase in transport fares, a move that would have widespread implications for commuters, businesses and inflation.
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