NPA to reduce diesel price floor by GH¢2 after government subsidy
The National Petroleum Authority (NPA) is set to reduce the price floor for diesel after the government introduced a GH¢2 per litre subsidy.
The move is aimed at helping consumers deal with the rising cost of fuel in Ghana.
The new price floor will take effect on Tuesday, August 4, 2026.
The announcement follows a directive from President John Dramani Mahama for the NPA to absorb GH¢2 on every litre of diesel.
The government says the move is part of efforts to reduce the pressure of rising fuel prices on Ghanaians.
Government Introduces GH¢2 Diesel Subsidy
President John Dramani Mahama directed the NPA to take steps to absorb GH¢2 on every litre of diesel.
The intervention is expected to provide some relief to consumers who have been affected by recent increases in fuel prices.
Diesel is widely used by commercial transport operators and businesses across the country. As a result, higher diesel prices can increase the cost of transportation and the cost of doing business.
The government hopes the GH¢2 subsidy will help reduce some of these pressures.
NPA to Announce New Diesel Price Floor
The NPA has confirmed that the government intervention has been included in the petroleum price build-up.
The price build-up is used to calculate the minimum price at which Oil Marketing Companies (OMCs) can sell petroleum products during a pricing window.
With the GH¢2 intervention included in the calculation, the diesel price floor will be reduced by GH¢2 per litre.
The new price floor will become the minimum price that OMCs can charge for diesel during the current pricing window.
NPA Explains the New Price
Speaking on Joy FM’s Midday News, the NPA’s Director of Economic Regulation and Planning, Abass Tasunti, explained how the government subsidy will affect the price floor.
He said:
“The intervention that has been made is in the price build-up, and this price build-up is what is used to determine the price floor.
“With this intervention, what it means is that the current price floor that we set for diesel for this window will be reduced by GH¢2 per litre for diesel,” he explained on Monday, August 3.
According to Mr Tasunti, the NPA is preparing an official communication for Oil Marketing Companies.
He added:
“We are currently working on the communiquĂ© to the industry, the oil marketing companies, to inform them about this directive. This means that we are going to issue a new price floor today, effective tomorrow.”
What the New Price Floor Means
The price floor is the minimum price at which OMCs are allowed to sell a petroleum product during a specific pricing period.
The reduction means the minimum price for diesel will be GH¢2 lower than the previously announced price floor.
However, the new price floor does not necessarily mean every fuel station will sell diesel at exactly the same price.
OMCs may set their pump prices based on several factors, including their operating costs and market conditions, as long as they do not sell below the official price floor.
Relief for Transport Operators and Businesses
The government’s decision is expected to benefit commercial transport operators and businesses that depend heavily on diesel.
Transport operators often face higher costs when diesel prices rise. These costs can affect fares and the prices of goods and services.
Businesses that use diesel-powered vehicles and equipment may also experience higher operating expenses when fuel prices increase.
By reducing the diesel price floor, the government hopes to reduce some of the financial pressure on these groups.
The intervention could also help limit the impact of rising fuel prices on the wider economy.
New Price Floor Takes Effect Tuesday
The NPA is expected to issue the new price floor to OMCs on Monday, August 3.
The revised price floor will then take effect on Tuesday, August 4, 2026.
The announcement comes at a time when fuel prices have become a major concern for many Ghanaians.
The government believes the GH¢2 per litre intervention will provide some relief to consumers while helping to manage the effects of rising fuel costs.
Consumers and industry players will now be watching closely to see how OMCs respond to the revised diesel price floor.
The NPA’s decision marks the latest government intervention aimed at cushioning Ghanaians from the impact of higher fuel prices.
For commercial drivers, businesses, and other diesel users, the reduction could provide some much-needed relief as they deal with rising operating costs.
