Fuel Prices to Drop as Government Absorbs GH¢2 Per Litre on Diesel, GH¢0.36 Per Litre on Petrol

• Government steps in to ease fuel costs with a GH¢2 reduction on diesel and a GH¢0.36 reduction on petrol
• These temporary measures kick in on April 16, 2025, promising some relief amidst rising global fuel prices
• The finance and energy ministers were tasked to remove taxes on petroleum products by this week

The government has announced temporary measures aimed at cushioning consumers against rising fuel prices.

Following increased volatility on the international petroleum market, the government will be absorbing GH¢2.00 per litre on diesel and GH¢0.36 per litre on petrol.

These measures will be effective April 16, which is the start of the next pricing window, according to a statement from the government.

Fuel prices have seen a spike because of the disruption to the crude oil supply chain brought on by the Iran war.

Of particular impact has been the closure of the Strait of Hormuz to most sea traffic, a critical global oil shipping route.

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In comments to YEN.com.gh, energy analyst Benjamin Nsiah said he expected some relief from the government.

He also observed that the government is benefiting from the increase in fuel prices globally.

"The expectation is that, if prices rise more than GH¢15, the justification for introducing the GH¢1 cedi levy will be zero.”

"The windfall gained from the upstream could also be used to cushion downstream and cushion the power sector debts."

Effect of Iran war on fuel supply

Iran has effectively stopped tankers from using the Strait of Hormuz, the shipping lane between the Persian Gulf and the Gulf of Oman.

Attacks on merchant ships near the strait have killed at least seven sailors, according to the International Maritime Organisation.

AP reported that US President Donald Trump also assured threatened intensified action on Iran if the country made any “attempt to stop the globe’s oil supply.”

After the recent ceasefire in the war, benchmark Brent and WTI contracts dropped by 13% and 16% respectively to below $100 a barrel, as investors bet on the reopening of the Strait of Hormuz and a reduced geopolitical risk ​premium.

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The hike in fuel was being passed on to other services that Ghanaians depend on.

For example, the Ghana Private Road Transport Union had threatened to hike transport fares because of the increase in fuel prices. Increased transport fares also translate to increased fuel prices.

But it has now welcomed the expected relief from the government.

About the Iran war

Since February 28, joint US-Israeli attacks on Iran, which resulted in the death of Ayatollah Ali Khamenei, the country’s supreme leader, sparked a conflict involving different countries in the Middle East.

Time reported that at least 1,300 people in Iran have died in the conflict.

Iran responded with strikes across the Middle East, targeting several countries hosting US military bases.

Along with firing missiles and drones at Israel and at American bases in the region, Iran has also been targeting energy infrastructure.

This is in addition to its closure of the Strait of Hormuz, which transports 20% of the world's oil, sending oil prices soaring.

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Iran targets commercial ships

Earlier, YEN.com.gh reported that Iran had targeted commercial ships and Dubai Airport, escalating regional tensions amid global energy concerns.

Iran threatens financial institutions in the Middle East, endangering Dubai's economic stability as attacks escalate.

Airstrikes continue in Tehran and Lebanon as the UN discusses measures against Iran's aggression towards Arab nations.

Source: YEN.com.gh