Accra: The Cabinet has directed the Finance and Energy Ministers to implement fuel price cuts and initiate mass transport interventions to mitigate the impact of rising global oil prices on Ghanaians, caused by escalating tensions in the Middle East.
According to Ghana News Agency, the directive involves removing selected taxes and margins on petroleum products, expected to take effect during the next pricing window within a week. In addition, the Cabinet has instructed the Minister of Transport to deploy 100 newly acquired Metro Mass Transit buses immediately to alleviate commuting pressures and stabilize transport fares.
Mr. Felix Kwakye Ofosu, Presidential Spokesman and Minister of State in-charge of Government Communications, announced these measures at a press conference at the Presidency in Accra. He explained that the decisions emerged from an emergency Cabinet meeting chaired by President John Dramani Mahama, aiming to assess the impact of the ongoing United States-Israel-Iran conflict on Ghana's economy.
Mr. Ofosu highlighted that the escalation of the conflict has led to significant increases in global crude oil and refined petroleum prices, directly affecting fuel prices at the pump. He emphasized that the Cabinet's session was convened to review these developments, assess their impact on the people of Ghana, and identify mitigation strategies.
Despite the global pressures, Mr. Ofosu noted that recent macroeconomic gains, such as the appreciation and relative stability of the Ghana cedi and a decline in inflation to about 3.2 percent, have helped cushion the effects of external shocks. He mentioned that fuel prices remain comparatively lower than those recorded during the 2022 Ukraine conflict.
However, Mr. Ofosu warned that the increases recorded over the last two pricing windows could lead to higher transport fares and general price hikes, affecting the cost of living. He attributed these increases largely to disruptions in the Strait of Hormuz, a critical global oil transit route, which have resulted in higher insurance premiums and transportation costs.
To address these challenges, the Cabinet resolved to act swiftly with targeted fiscal and transport interventions. Mr. Ofosu stated that the tax and margin adjustments would initially be in force for a four-week period, subject to review based on prevailing conditions.
An additional 100 Metro Mass buses are expected to arrive in August, with a final batch of 100 due in November, increasing the total fleet to 300. These buses will be deployed along high-traffic corridors to reduce commuter burdens and offer fares lower than those charged by private operators, particularly during peak periods.
Mr. Ofosu also noted that the President had instructed Ministers and senior government officials to adhere strictly to the ban on fuel allowances and allocations, a directive applicable to all government appointees without exception.
The current conflict involving the United States, Israel, and Iran escalated into active hostilities on February 28, 2026, raising tensions across the Middle East and threatening global oil supply routes, particularly through the Strait of Hormuz. Although a two-week ceasefire is currently in force, with diplomatic efforts underway, the conflict has already triggered volatility in global energy markets, driving up crude oil prices, increasing shipping and insurance costs, and exerting inflationary pressures on economies worldwide, especially in import-dependent countries.