Government Extends GH¢2 Diesel Relief Into September

The government has extended the GH¢2 per litre reduction in the regulatory margin on diesel for the next pricing window in September, in a move aimed at cushioning consumers against rising fuel prices.

The intervention was originally introduced as a temporary measure covering two pricing windows and was expected to expire at the end of August.

However, the government has opted to maintain the reduction for at least the next pricing window, preventing the full GH¢2 per litre regulatory margin from being restored to diesel prices.

The decision comes amid growing concerns over an expected increase in petroleum prices at the pumps from the first pricing window of September.

Diesel is currently selling at around GH¢17 per litre at most Oil Marketing Companies (OMCs), and the extension is expected to provide some relief to motorists, transport operators and businesses.

The Chamber of Petroleum Consumers (COPEC) had called on the government to extend the intervention, warning that allowing it to expire could push diesel prices close to GH¢20 per litre.

COPEC Executive Secretary Duncan Amoah said maintaining the intervention would help cushion consumers against the expected upward adjustment in petroleum prices.

COPEC has also projected marginal increases in petroleum prices from Tuesday, September 1, citing developments on the international oil market. Petrol, in particular, is expected to come under pressure following a significant increase in its international trading price over the past two weeks.

The government introduced the GH¢2 per litre reduction in the regulatory margin on diesel effective August 4, following a surge in international oil prices.

The extension into September is therefore expected to limit the immediate impact of higher international oil prices on diesel consumers and help contain rising transportation, logistics and business operating costs.