Energy Minister John Jinapor likely to suspend some fuel margins today

Energy Minister John Jinapor is expected to announce a temporary suspension of some margins on petroleum pricing today, in what could bring relief to consumers over the next four weeks. The anticipated move is part of broader government efforts to ease the cost of living pressures, particularly as fuel prices continue to fluctuate due to global market dynamics.

This is what has been gathered from persons with knowledge of engagements between the Finance Minister, Cassiel Ato Forson, and the Energy Minister to review taxes and margins in the pricing of petroleum products for the second pricing window of the month, starting April 16. These high-level discussions are said to have focused on identifying components within the pricing structure that can be adjusted quickly without requiring extensive parliamentary approval.

It is understood that these margins, which could be described as “statutory”, are likely to reduce the price of petroleum products by up to GH¢1 per litre from April 16, 2026. If implemented, this reduction could offer temporary financial relief to households, transport operators, and businesses that depend heavily on fuel.

Checks with Parliament earlier this week also revealed that the Finance Ministry has not submitted any request to the House to review taxes on petroleum products. This suggests that any immediate intervention will likely be limited to margins that can be adjusted administratively.

This gives credence to earlier reports that government may not review or suspend some taxes on fuel prices today. Analysts say this approach may be aimed at avoiding lengthy legislative processes while still delivering short-term relief.

It is still not clear why the expected announcement may not include tax reviews. Some experts believe fiscal constraints and revenue targets may be influencing the decision to hold off on tax reductions.

However, sources say the situation could change at the last minute. There remains a possibility that additional measures could be introduced depending on final consultations and approvals.

Based on data from the National Petroleum Authority, the following taxes, levies and margins form part of the petroleum price build-up:

• Energy Sector Shortfall and Debt Repayment Levy – to facilitate energy sector debt recovery
• Road Fund Levy – to support road maintenance
• Energy Fund – to support Energy Commission activities
• Special Petroleum Tax – introduced as part of VAT reforms
• Price Stabilisation and Recovery Levy
• Primary Distribution Margin – to offset the costs of transporting products from coastal depots to inland depots
• BOST Margin – to fund maintenance, operations and expansion of depots
• Fuel Marking Margin – to support monitoring and regulation of fuel quality
• Unified Petroleum Pricing Fund (UPPF) – to ensure price uniformity nationwide
• Distribution Compensation Margin – to support LPG distribution to northern and non-urban areas
• LPG Filling Plant Administrative Cost – to cover administrative expenses

These components collectively determine the final price consumers pay at the pump, making any adjustment to margins significant in influencing fuel costs.

Government spokesperson Felix Kwakye Ofosu last week announced that Cabinet had directed the Energy and Finance Ministries to review some taxes and margins on petroleum products to cushion consumers. The directive reflects growing concern within government about the impact of rising fuel costs on the broader economy.

According to him, the move is intended to reduce the burden on consumers as fuel prices respond to developments in global oil markets. Fluctuations in crude oil prices and exchange rate pressures have been key drivers of recent increases in fuel prices.

He noted that the intervention will last for four weeks and will be subject to review depending on developments in the international market. This indicates that the policy is temporary and may be adjusted or extended based on economic conditions.

Meanwhile, four civil society organisations are proposing a deeper cut in fuel prices. These groups argue that the current measures may not be sufficient to significantly ease the financial burden on citizens.

In a joint recommendation issued on April 14, 2026, IMANI Africa, COPEC Ghana, INSTERPR, and the Institute for Energy Security urged government to reduce taxes, levies and margins in the petroleum price build-up.

The groups are proposing a GH¢1.65 reduction per litre for two months, arguing that the relief should be deeper and longer than what government is currently considering. They believe such a reduction would have a more meaningful impact on transport fares, food prices, and general cost of living.

The proposal follows a directive by John Mahama, who tasked the Ministries of Energy and Finance to review the fuel price structure and propose temporary relief measures. His involvement underscores the political and economic importance of fuel pricing in Ghana’s policy landscape.