Mahama Calls Emergency Cabinet Meeting as Fuel Prices Surge

President John Dramani Mahama announced on Saturday that he has convened an emergency Cabinet meeting to address the sharp rise in fuel prices driven by the ongoing conflict in Iran and its disruption to global oil markets.

Speaking at the Kwahu Business Forum in Mpraeso, Eastern Region, on April 4, Mahama said the meeting would focus on identifying practical interventions to cushion Ghanaians from the full impact of the increases.

"I have called for this emergency cabinet meeting to decide on specific measures we can take to cushion petroleum prices while we hope the conflict comes to an end. There are adjustments we can make, particularly in the margins, to help maintain relatively stable prices as we pray for the war to cease," he said.

Steepest Hike in Months

According to the National Petroleum Authority (NPA), fuel prices in Ghana rose significantly for the April 1–15 pricing window. Petrol climbed approximately 15 percent to around GH¢13.30 per litre, while diesel recorded an even steeper increase of roughly 19 percent to GH¢17.10 per litre; one of the largest single-window adjustments in recent months. Major oil marketing companies including GOIL have already implemented the new prices at the pump.

The escalation follows the closure of the Strait of Hormuz, which the International Energy Agency has described as the most significant supply disruption in the history of the global oil market. Global crude prices have surged above $100 per barrel since the conflict's escalation in late February, placing pressure on import-dependent economies across Africa.

Cabinet to Review Levies and Margins

The President confirmed that Cabinet would examine the full structure of Ghana's fuel price build-up, including taxes, levies, and distribution margins, to identify areas where targeted relief could be applied without destabilising the government's fiscal position. The government is currently reviewing options including temporary reductions in fuel levies and margins.

"The government remains fully committed to easing the burden on citizens. The cabinet will examine various aspects of the fuel price build-up and consider interventions to provide relief," Mahama added.

Bank of Ghana Governor Dr. Johnson Asiama has acknowledged that rising oil prices driven by geopolitical tensions translate directly into domestic costs through imported inflation, and that sustained increases could tighten global financial conditions, making external borrowing more expensive for emerging economies.

Transport Unions Hold, For Now

Mahama specifically commended transport unions for resisting immediate fare hikes, describing their restraint as a critical buffer against further economic strain on commuters and businesses. Any upward adjustment in transport fares typically triggers a chain reaction across the broader economy, driving up food prices and the general cost of living. Transport unions have, however, issued a 48-hour ultimatum to the government to cut fuel taxes or face a nationwide fare increase.

Sachet water producers separately announced price increases effective April 6, citing higher distribution costs linked to the conflict. The President nevertheless sought to reassure the public that the economy was not at risk of collapse.

"I can confidently tell you that the economy will not collapse because of the war in Iran," he said, pointing to macroeconomic improvements including reduced inflation, which fell from 22.4 percent in March 2025 to 3.2 percent in March 2026 and a more stable cedi as factors that give the country resilience to absorb external shocks.

Ghana has also secured a 320,000-barrel fuel shipment from Russia, with the vessel Hellas Fighter expected to arrive at Tema on April 6, 2026, according to ship-tracking data. Russia has been Ghana's second-largest supplier of petroleum products since 2023.