Government reviews diesel subsidy as transport fare increase takes effect

The government is currently evaluating its diesel subsidy as the new 8% increase in public transport fares comes into effect. Felix Kwakye Ofosu, the government spokesperson, stated that the review will decide whether to extend the current relief on diesel prices. The subsidy was introduced in April due to a rise in global crude oil and petroleum product prices caused by the Israeli-Iranian-US conflict.

Ofosu explained that the government had implemented the diesel intervention to protect Ghanaians from the full impact of the price hike. He reiterated that the diesel relief has been subject to periodic reviews, and a new review will be conducted once the current pricing window ends. Transport operators have already implemented the 8% fare increase, leading to concerns about the consequences of rising fuel prices for commuters.

Ofosu affirmed the government's commitment to helping Ghanaians cope with the increasing diesel prices, emphasizing that diesel was targeted due to its significance in commercial transport and other businesses. He added that if gasoline or petrol were to show similar trends, the government might consider taking action. However, no final decision has been made regarding the continuation of the diesel relief, which will be announced once the ongoing review is completed.