Government Extends GH¢2 Diesel Subsidy for Two More Months
Government adjusts subsidy funding, with GH¢1 coming from the D-Levy and GH¢1 from industry margins.
- GH¢2 diesel subsidy extended for two months.
- GH¢1 will be deducted from the D-Levy.
- Extension aims to cushion consumers from high fuel prices.
The government has extended the GH¢2-per-litre subsidy on diesel for another two months as part of efforts to cushion consumers against rising fuel prices.
The extension will maintain the subsidy arrangement, under which diesel consumers will continue to benefit from a total reduction of GH¢2 per litre.
However, the funding mechanism has been adjusted. Under the new arrangement, GH¢1 will be deducted from the D-Levy on diesel, while the remaining GH¢1 will come from industry margins.
The latest arrangement continues the government-industry burden-sharing mechanism introduced on April 16, 2026.
The extension is expected to provide some relief to motorists, commercial transport operators and businesses that depend heavily on diesel, particularly amid elevated global crude oil prices.
The government introduced the latest fuel price intervention on August 4, 2026, following a surge in international oil prices. This latest extension represents the fourth intervention aimed at cushioning consumers against rising fuel prices.
However, concerns remain over outstanding payments to oil marketing companies in connection with the subsidy introduced in August.
