President Mahama Convenes Emergency Cabinet Meeting to Address Fuel Price Surge Amid Middle East Tensions

President John Dramani Mahama has summoned an emergency Cabinet meeting to address the significant spike in petroleum prices following the recent escalation of conflict in the Middle East. Speaking at the 2026 Kwahu Business Forum, the President sought to reassure the nation, stating that while geopolitical tensions involving Iran have driven global oil prices upward, Ghana’s economy remains resilient. The emergency session aims to review the National Petroleum Authority’s pricing framework and explore practical interventions—such as reducing fuel margins—to cushion the financial burden on consumers and businesses.

As of April 1, 2026, fuel prices in Ghana saw a sharp increase, with petrol rising by 15% to GH"13.30 per litre and diesel surging by 19% to GH"17.10 per litre. Despite these hikes, President Mahama emphasized that there is no imminent risk of fuel shortages or pump queues, as the country currently maintains six weeks of petroleum reserves. He further highlighted that the national export cover remains strong at nearly six months, providing a buffer against external shocks. The President stressed that the government is actively working to secure additional supplies to maintain long-term energy security.

During his address at the forum, the President also injected a moment of levity by using humor to explain the ripple effects of government spending. In what has been dubbed 'side-chick economics,' Mahama noted that timely payments to contractors stimulate various sectors of the economy beyond the primary recipients. He jokingly remarked that such payments benefit not only contractors and their spouses but also 'side chicks,' leading to increased spending at jewelry shops, hair salons, and car dealerships. While lighthearted, the anecdote was used to illustrate the interconnectedness of economic activity and the importance of liquidity in the system.

On the labor front, the Ghana Private Road Transport Union (GPRTU) is scheduled to meet with the Ministry of Transport on April 7 to discuss the impact of the price hikes on the transport sector. President Mahama praised the transport unions for their patience and for not immediately passing the cost increases onto commuters through higher fares. As the Cabinet prepares to finalize its relief measures, the government remains focused on maintaining macroeconomic stability while navigating the volatile global energy market to prevent the economy from buckling under international pressure.