Fuel margin suspension to cut prices by up to GH¢1 from April 16
Energy Minister John Abdulai Jinapor is expected to announce a temporary suspension of selected fuel margins, a move that could reduce pump prices by up to GH¢1 per litre from April 16.
The intervention follows engagements with Finance Minister Cassiel Ato Forson to review components within the petroleum pricing structure ahead of the second pricing window of the month.
The adjustment will target margins within the price build-up rather than taxes, allowing for immediate implementation without parliamentary approval.
Current data shows that margins and levies make up a significant portion of fuel prices. Petrol carries about GH¢4.27 per litre in combined margins and levies, while diesel stands at GH¢4.25 per litre. LPG margins total approximately GH¢2.16 per kilogram.
Major components include the Energy Sector Shortfall and Debt Repayment Levy, Road Fund Levy, Special Petroleum Tax, and the Unified Petroleum Pricing Fund. Additional charges such as the Primary Distribution Margin, BOST Margin, and Fuel Marking Margin also contribute to the final price consumers pay at the pump.
Parliamentary checks indicate that the Finance Ministry has not submitted any proposal to review fuel taxes, reinforcing that the expected reduction will come solely from margin adjustments.
The measure is expected to remain in place for about four weeks, offering temporary relief to consumers as authorities monitor market conditions under Ghana’s deregulated fuel pricing system.
About The Author
