Government Has Absorbed Over GH¢2 Billion to Shield Fuel Consumers, Says NPA Chief

The government has absorbed more than GH¢2 billion in fuel price interventions to cushion Ghanaians against rising petroleum costs, the Chief Executive of the National Petroleum Authority (NPA), Godwin Kudzo Tameklo, has disclosed, describing the spending as a direct response to global supply disruptions linked to tensions between the United States and Iran.

Speaking at the 2026 NPA Consumer Week Celebration at Ofaakor Park in Kasoa on Thursday, November 5, Tameklo said President John Dramani Mahama had directed the intervention to ease the pressure of rising fuel prices on households and businesses. "The Government of Ghana, through the National Petroleum Authority, has so far absorbed a little over GH¢2 billion to make life better for our people," he said .

The NPA chief said the intervention was intended to shield consumers from the full impact of disruptions to global oil supplies, particularly along the Strait of Hormuz, a chokepoint through which a significant share of global petroleum passes .

A Policy of Rolling Interventions

The GH¢2 billion figure represents the cumulative cost of a series of measures introduced since April 2026. The government's first intervention, effective April 16, saw the state absorb GH¢2.00 per litre on diesel and GH¢0.36 per litre on petrol for an initial one-month period, following a sustained rise in global petroleum prices . That measure was extended in May at a reduced rate of GH¢1.07 per litre on diesel, before being reviewed again.

In August, President Mahama directed the NPA to reduce the regulatory margin on diesel by GH¢2.00 per litre for one month, a move the government said was intended to "cushion consumers, prevent transport fare hikes, contain inflationary pressures, and mitigate the pass-through effect of higher fuel prices on the cost of living" . The policy was subsequently extended through September .

At the Kasoa event, Mark Prempeh, Director of Petroleum at the Ministry of Energy and Green Transition, elaborated on additional relief measures. He said the government had absorbed a GH¢2 per litre increase in diesel prices, extended the relief through September, and in October arranged for the Tema Oil Refinery and Sentuo to supply refined products to Bulk Distribution Companies at existing refinery prices. The government also reduced the Energy Sector Recovery Levy on diesel by GH¢1 per litre .

Consumer Protection and Safety Warnings

The Consumer Week celebration, held under the theme "Safe Downstream: Confident Consumers," also served as a platform for the NPA to address safety and accountability in the petroleum sector. Tameklo warned that persons who siphon fuel from overturned tankers risk prosecution and could face up to 20 years in prison, describing the practice as theft and a grave safety hazard . He said the Authority was intensifying its "Stay Back, Stay Safe" campaign and planned to install surveillance cameras along highways to deter the practice .

Tameklo also announced that the NPA had established procedures requiring petroleum service providers to acknowledge consumer complaints and resolve them within 30 days. He urged consumers to report issues through the Authority's toll-free number, 0800 123 000, and to check pump readings, verify displayed prices, and demand receipts .

Phyllis Naa Koryoo Okunor, Member of Parliament for Awutu Senya East, called on the NPA to intensify safety inspections and enforcement of standards in the downstream sector. "Consumers must be assured that the fuel and LPG they purchase are safe, properly measured and meet the required quality standards," she said .

The Cost of Cushioning

The scale of the intervention has drawn attention to its fiscal implications. In April, Dr Prince Amoabeng Aggrey, a member of the NDC's communications team, estimated that the subsidy could cost Ghana more than GH¢500 million per month, given monthly fuel consumption of approximately 230 million litres of diesel and 250 million litres of petrol. He noted that the funds would otherwise have been channelled into development and other sectors .

Tameklo has previously said that without government intervention, diesel prices could have risen to about GH¢28 per litre . For now, the government's position is that the relief is necessary to protect consumers from external shocks, with further measures to be considered in the 2027 budget.