Government extends GH¢2 diesel margin reduction into September - Source

The government has extended its GH¢2 per litre reduction in the regulatory margin on diesel into the first pricing window of September, in a move aimed at cushioning consumers against a possible increase in fuel prices.

A high-level government source confirmed that the intervention followed concerns about a potential increase in diesel prices at the pumps during the next pricing window.

The GH¢2 reduction, introduced as a temporary measure covering two pricing windows, was initially expected to expire at the end of August.

However, the government has decided to maintain the reduction for at least one additional pricing window, preventing the full regulatory margin from being restored to the price of diesel.

Diesel is currently selling at about GH¢17 per litre at most Oil Marketing Companies (OMCs).

The extension is expected to provide some relief to motorists, commercial transport operators and businesses that rely heavily on diesel, particularly as elevated international crude oil prices continue to exert pressure on domestic fuel prices.

The government first introduced the GH¢2 per litre reduction on August 4 following a surge in global oil prices.

By extending the measure into September, the government is seeking to limit the impact of rising international petroleum prices on consumers and businesses.

Diesel remains a critical input for Ghana’s transport, logistics, agriculture and industrial sectors, making changes in its price particularly important for the broader cost of living and business operations.

The latest decision represents the third intervention by the government aimed at cushioning consumers against rising fuel prices.

The extension also means consumers will continue to benefit from the temporary reduction in the regulatory margin as authorities monitor developments in the international oil market and their potential impact on local petroleum prices.

The government is expected to continue assessing global crude oil prices and other factors influencing domestic fuel pricing before deciding whether to maintain or withdraw the intervention in subsequent pricing windows.