National Petroleum Authority Reveals GH¢1 Billion Fuel Subsidy as Transport Operators Threaten Strike Over Rising Costs

The National Petroleum Authority (NPA) has disclosed that the government of Ghana has spent nearly GH¢1 billion to stabilize fuel prices, preventing diesel from reaching a projected high of GH¢28 per litre. NPA Chief Executive Officer Godwin Edudzi Tameklo revealed that international diesel prices have nearly doubled since February 2026, surging from US$794 to US$1,519 per metric tonne. Without the current GH¢2 per litre state intervention—which provides approximately GH¢20 in relief for every 10 litres purchased—the impact on transportation and the cost of essential goods would have been far more severe for the Ghanaian consumer. Despite this support, oil marketing companies have recently adjusted pump prices, with petrol and diesel now trading at approximately GH¢16.77 and GH¢17.77 per litre, respectively, at several outlets.

This pricing volatility has triggered significant unrest within the transport sector, with the Progressive Transport Owners Association (PROTOA) announcing an indefinite strike scheduled to begin on September 21, 2026. PROTOA officials, including Public Relations Officer Samuel Adu-Yeboah, cited the escalating costs of vehicle maintenance, driven by high port charges and taxes on spare parts, as the primary reasons for the service withdrawal. While the Ghana Private Road Transport Union (GPRTU) has distanced itself from the strike, it confirmed that a committee formed with the Ministry of Transport is currently negotiating a potential 25% to 30% fare increase to mitigate the financial strain on commercial drivers. Individual drivers have reported that the dual pressure of fuel hikes and the depreciation of the cedi is significantly eroding their daily earnings.

Amidst these domestic pressures, the Bulk Oil Storage and Transportation Company (BOST Energies) has significantly reduced its fuel exports to neighboring Burkina Faso and Mali. Managing Director Afetsi Awoonor stated that the move was necessary to prioritize Ghana’s domestic demand, which has increased as economic activity expands. However, BOSTenergies later clarified that the reduction in export volumes was also influenced by ongoing renovation works at its Bolgatanga depot. To further enhance regional energy security, BOST plans to commission a new liquefied petroleum gas (LPG) terminal in Tema and a storage facility in Kumasi by late 2026. Simultaneously, the petroleum market is seeing increased competition as Star Oil’s subsidiary, SOL Energy, recently secured a Bulk Import, Distribution, and Export (BIDEC) license from the NPA, a move expected to give the company greater control over supply chains and pricing.

While global oil prices have recently eased—with Brent crude trading around $104.59 per barrel following reports of increased supply from Saudi Arabia—Ghana’s energy sector remains vulnerable to external shocks and currency fluctuations. The Ghana cedi has faced renewed depreciation pressures due to high demand for US dollars from energy importers preparing for the peak trading season. As the government continues to manage the delicate balance between international procurement costs and domestic price stability, the outcome of the September 21 strike deadline remains a critical focal point for businesses and commuters alike.