The John Dramani Mahama administration has discontinued the last remaining diesel fuel price relief programme, bringing an end to temporary interventions introduced to shield consumers from rising fuel costs linked to geopolitical tensions in the Middle East.
The withdrawal of the GH¢1.07 per litre diesel subsidy takes effect ahead of the second pricing window of June, which begins on June 16.
The fuel relief measures were first introduced in April when government absorbed GH¢2.00 per litre on diesel and GH¢0.36 per litre on petrol to cushion households and businesses against escalating petroleum prices.
While the programme was initially expected to run for a month, government subsequently revised the support package. In May, the petrol subsidy was removed entirely, while the diesel subsidy was reduced from GH¢2.00 to GH¢1.07 per litre.
Officials at the time explained that the adjustment was intended to balance consumer support with the need to ensure the sustainable supply and distribution of petroleum products across the country.
Government had indicated that the reduced diesel subsidy would remain in place for two pricing windows before being reviewed. That review has now resulted in the complete withdrawal of the intervention.
The decision comes at a time when consumers are expected to benefit from falling fuel prices at the pumps.
According to projections by the Chamber of Oil Marketing Companies (COMAC), petrol prices could decline by as much as 9.3 per cent during the second pricing window of June, while diesel prices are expected to record a more modest reduction of about 1.7 per cent.
COMAC attributes the anticipated declines primarily to a sharp drop in international refined petroleum product prices, describing it as the most significant reduction recorded so far in 2026.
However, the chamber notes that the impact on diesel prices will be limited because the government-industry intervention mechanism that previously cushioned consumers has now been fully removed.
Liquefied Petroleum Gas (LPG) prices, meanwhile, are expected to remain relatively stable due to existing supply agreements that continue to influence pricing.
On the international market, crude oil prices have been trending downward amid signs of easing tensions between the United States and Iran. Reports of progress toward a framework agreement between the two countries have fuelled expectations that the Strait of Hormuz, one of the world’s most critical oil shipping routes, could remain fully accessible, reducing concerns over potential supply disruptions.
The easing of global oil market pressures has contributed to lower crude and refined petroleum prices, a development that could offer further relief to fuel-importing countries such as Ghana if the trend persists.
