A temporary GH¢2 margin reduction on diesel is not a sustainable solution to Ghana’s escalating fuel prices, energy expert Mr. Samson Addae has warned.
While acknowledging that the intervention provides immediate, short-term relief to consumers, Mr. Addae emphasised that fundamental structural changes are required to insulate the country from volatile global market conditions.
Speaking on Nyankonton Mu Nsem on Rainbow Radio 87.5FM, he pointed out that roughly 95 per cent of fuel levies go directly to the government, arguing that a true commitment to long-term affordability must involve a broader permanent removal of these taxes.
“The GH¢2 margin removed on diesel is not a lasting solution, although it is an immediate short-term measure that can provide relief,” Mr. Addae stated. “About 95 per cent of levies on fuel go to the government. If it were truly committed to long-term solutions, then several of these levies ought to be permanently removed.”
Addressing the primary drivers behind the recent price hikes, Mr. Addae explained that geopolitical turmoil—particularly conflict in the Middle East and the closure of the Strait of Hormuz—has placed immense pressure on global supply chains, especially across Europe.
“Surging international crude oil prices are largely driven by geopolitical instability in major oil-producing regions, such as tensions in the Middle East around the Strait of Hormuz,” he noted. “Ghana relies heavily on imported refined petroleum products, meaning increases in global crude and refined benchmark prices immediately translate into higher landed costs for fuel.”
He added:”There is severe pressure on the global market… The higher the bidder, the more fuel a country is able to secure, and that is precisely why prices keep rising.”
His comments follow decision by major Oil Marketing Companies (OMCs), including Star Oil and GOIL, to adjust petrol and diesel pump prices upwards. This came on the back of the National Petroleum Authority’s (NPA) revised August 2026 pricing window, which set the price floor for petrol at GH¢14.53 per litre and diesel at GH¢16.97 per litre.
TOR Expansion Key to Lasting Relief
To achieve genuine energy security and cheaper fuel, Mr. Addae highlighted the revamping of the Tema Oil Refinery (TOR) as the ultimate game-changer.
He pointed to the recent directive by President John Dramani Mahama instructing TOR management to draft a strategic roadmap toward reaching a processing capacity of 100,000 barrels per day.
The directive was issued on 1 August 2026 during the commissioning of the refurbished refinery, located in the Tema Industrial Enclave approximately 25.7 km from central Accra.
The facility recently processed one million barrels of domestic Jubilee Field crude after significant upgrades to its Crude Distillation Unit (CDU) and Residual Fluid Catalytic Cracking Unit.
According to Mr. Addae, fully operationalising the refinery offers a concrete path forward for the national economy.
“This move is crucial in ensuring affordable fuel because we would be reducing our fuel importation by 75 per cent,” he stressed. “It will boost the local economy, strengthen the cedi, create jobs, and most importantly, make fuel significantly cheaper for Ghanaians.”
By: Rainbowradioonline.com/Ghana