Government extends GH¢2 diesel subsidy for two more months

The government has extended the diesel subsidy by GH¢2 per litre for another two months to alleviate the burden on consumers grappling with rising fuel prices. This intervention, which will now cover September and November 2026, differs from previous arrangements as the full GH¢2 reduction will be achieved through a GH¢1 decrease in the D-Levy on diesel, coupled with a GH¢1 reduction in the margins.

Consequently, the subsidy remains at GH¢2 per litre, but the financial responsibility is now shared between the government and industry. This move aims to provide relief to motorists, commercial transport operators, and businesses that heavily rely on diesel, especially considering the soaring international crude oil prices. The government implemented this latest fuel price intervention on August 4, following a sharp increase in global oil prices.

This extension represents the government's fourth attempt to cushion consumers from escalating fuel costs. However, there are concerns about unpaid obligations to oil marketing companies following the subsidy extension in August. Despite these concerns, the latest arrangement is expected to continue providing relief at the pump while distributing the cost of the intervention between government revenue from the D-Levy and industry margins.