The government has extended the GH¢2-per-litre reduction on diesel prices for another two months, while introducing a new mechanism to share the cost of the intervention between the state and petroleum industry.
Under the revised arrangement, GH¢1 of the subsidy will be financed through a reduction in the D-Levy on diesel, while oil industry margins will absorb the remaining GH¢1.
The total relief at the pump will therefore remain GH¢2 per litre, although the funding structure differs from the previous arrangement, under which the full amount was deducted from diesel margins.
The extension forms part of government’s efforts to cushion motorists, commercial transport operators and businesses against elevated fuel prices, particularly amid higher international crude oil prices.
It also continues the government-industry burden-sharing framework introduced on April 16, 2026.
The latest intervention follows the government’s decision on August 4 to reduce the impact of rising global oil prices on domestic fuel consumers. It represents the fourth intervention introduced to moderate fuel price increases.
However, there are concerns over outstanding payments reportedly owed to some oil marketing companies in connection with the subsidy implemented in August.
The revised funding model is expected to ease pressure associated with financing the intervention by distributing the cost between government revenue forgone through the D-Levy and industry margins.
For diesel consumers, the immediate benefit remains unchanged, with the GH¢2-per-litre reduction continuing under the extended arrangement.
The policy is particularly significant for commercial transport operators and businesses that rely heavily on diesel, as fuel costs feed directly into transportation, logistics and operating expenses.
The extension comes as international oil market developments continue to influence domestic petroleum prices. The government is expected to continue monitoring global crude oil prices and other factors affecting the local fuel market.
While the new arrangement maintains the same level of relief for consumers, the shift in financing means that government and industry will jointly bear the cost of sustaining the diesel price reduction over the extended period.
Source: businesspostonline
