…Reveals suspension of GH¢1 energy sector levy, price freeze by TOR and Sentuo
The Chief Executive Officer of the National Petroleum Authority (NPA), Godwin Edudzi Tamekloe, has disclosed that strategic interventions by the Ghana Gold Board (GoldBod) and the Bank of Ghana (BoG) have significantly improved access to foreign exchange for petroleum importers, helping to cushion Ghanaian consumers against rising fuel prices.
According to him, the interventions have eased pressure on Bulk Distribution Companies (BDCs), which depend heavily on foreign exchange to import refined petroleum products into the country.
The improved availability of foreign exchange, coupled with the temporary suspension of the GH¢1 Energy Sector Shortfall and Debt Repayment Levy and an agreement by two major refineries to maintain their selling prices, has helped prevent a sharper increase in petroleum prices.
Speaking in an interview on Citi FM’s Eyewitness News yesterday, Thursday, 5 November 2026, Mr Tamakloe explained that the government’s coordinated interventions had reduced the impact of international petroleum prices and foreign exchange costs on the domestic market.
“Essentially, what has happened is that there has been an availability of forex for the BDCs related to importation of refined petroleum products,” he stated.
He attributed the development partly to measures introduced by GoldBod and the central bank, which he said had strengthened Ghana’s foreign exchange reserves and improved the availability of foreign currency for businesses importing petroleum products.
The NPA boss explained that access to foreign exchange remained a critical factor in determining petroleum prices because Ghana continued to depend substantially on imported refined petroleum products to meet domestic demand.
Consequently, any shortage of foreign currency or sharp depreciation of the Ghana cedi could increase the cost of importing petroleum products, with the additional expenditure ultimately reflected in pump prices.
However, he indicated that the recent interventions had helped limit the extent to which such costs were passed on to consumers.
Mr Tamekloe also disclosed that the Minister for Finance, Dr Ato Forson, had agreed to temporarily suspend the GH¢1 Energy Sector Shortfall and Debt Repayment Levy for October and November 2026 as part of measures to reduce the financial burden on motorists and other petroleum consumers.
He explained that the decision had provided additional relief at a time when developments in the international petroleum market threatened to push domestic fuel prices higher.
“Thankfully, and I must say this, the Minister for Finance graciously agreed that for the months of October and November, the GH¢1, that’s the energy shortfall levy, the GH¢1, he’s suspending it. And that suspension alone has also helped us further cushion the impact,” he said.
The temporary suspension, according to the NPA Chief Executive, formed part of broader government efforts to moderate fuel-price increases and protect consumers from the full effects of rising international petroleum costs.
The levy is associated with efforts to address financial shortfalls and debt obligations within Ghana’s energy sector.
Its suspension, although temporary, means that consumers have been spared the additional GH¢1 charge during the two-month period covered by the government’s intervention.
The decision also raises questions about whether the suspension could be extended beyond November should international petroleum prices and other market conditions continue to exert pressure on domestic fuel prices.
Mr Tamekloe, however, did not indicate whether the government was considering extending the measure.
Beyond the foreign exchange interventions and levy suspension, the NPA boss revealed that an emergency meeting convened by the Minister for Energy and Green Transition, Dr John Abdulai Jinapor, in October had resulted in another significant intervention aimed at stabilizing petroleum prices.
The meeting brought together representatives of the Tema Oil Refinery (TOR), Sentuo Oil Refinery, and some Oil Marketing Companies (OMCs) to discuss measures to minimize the impact of rising petroleum costs on consumers.
Following the discussions, the two refineries agreed to maintain their selling prices to Bulk Distribution Companies at the levels prevailing before the meeting.
The arrangement was intended to prevent additional increases in refinery selling prices from translating into higher costs for petroleum distributors and, ultimately, consumers.
Mr Tamekloe indicated that the cooperation demonstrated the importance of coordination among government agencies, local refineries and petroleum marketing companies in managing price pressures within the downstream petroleum sector.
The agreement also highlights the role that domestic refining capacity can play in cushioning the economy against fluctuations in international petroleum markets.
Although Ghana continues to rely substantially on imported refined petroleum products, the operations of TOR and Sentuo have become important components of the country’s petroleum supply arrangements.
Their decision to maintain selling prices, therefore, formed part of the measures adopted to reduce the immediate impact of rising petroleum costs.
The NPA Chief Executive’s comments also draw attention to the growing role of GoldBod in Ghana’s foreign exchange management and broader economic stabilization efforts.
The institution’s interventions, in collaboration with the Bank of Ghana, have been credited with improving the country’s reserve position and supporting the availability of foreign exchange for critical imports.
For petroleum importers, reliable access to foreign currency is particularly important because international petroleum transactions are largely denominated in United States dollars.
A shortage of dollars can force importers to obtain foreign exchange at higher costs, which may eventually be reflected in the prices consumers pay for petrol, diesel and other petroleum products.
Mr Tamekloe’s explanation suggests that improved foreign exchange availability has helped moderate these pressures, reducing the risk of sharp increases in domestic fuel prices.
The development is particularly significant for the transport sector, commercial businesses and households, which are vulnerable to increases in petroleum prices.
Higher fuel prices frequently translate into increased transport fares, distribution costs and production expenses, with consequences for the prices of goods and services.
Consequently, interventions that moderate petroleum prices can have wider implications for inflation, business operating costs and household expenditure.
Mr Tamekloe maintained that the combined effect of improved foreign exchange availability, the temporary suspension of the energy sector levy and the agreement by the two refineries to maintain their prices had helped protect consumers from the full impact of international petroleum market developments.
He explained that without these interventions, increases in foreign exchange costs and international free-on-board (FOB) petroleum prices could have resulted in higher domestic pump prices.
FOB prices represent the cost of petroleum products at the point of shipment, before additional expenses associated with transportation, insurance and other import-related charges are factored into the final cost.
Changes in these international prices, together with exchange rate movements, remain important determinants of petroleum pricing in Ghana.
The NPA boss indicated that the government’s interventions had helped reduce the immediate impact of these factors, although they had not eliminated the country’s exposure to fluctuations in the global petroleum market.
His remarks come amid continuing public concern about fuel prices and their implications for transport fares, food prices and the general cost of living.
For consumers, the immediate benefit of the interventions has been the moderation of price increases that might otherwise have occurred.
However, the sustainability of the relief will depend partly on developments in international petroleum markets, the stability of the cedi and the government’s ability to maintain measures that support foreign exchange availability.
With the temporary suspension of the GH¢1 levy scheduled to cover only October and November, attention is likely to turn to the government’s next decision and its implications for petroleum prices in December.
For now, Mr Tamakloe insists that the coordinated interventions by GoldBod, the Bank of Ghana, the Finance Ministry, the Energy Ministry and the two refineries have provided an important cushion against rising petroleum costs, helping to protect consumers while ensuring that petroleum importers continue to obtain the foreign exchange required to maintain supplies to the Ghanaian market.
