Government reviews diesel subsidy as transport fare increase takes effect

The government is currently reviewing its diesel subsidy as a new 8% increase in public transport fares has come into effect. Government spokesperson Felix Kwakye Ofosu stated that the review will determine whether the current relief on diesel prices should continue. The measure was introduced in April following a rise in global crude oil and petroleum product prices due to the Israeli-Iranian-US conflict.

Ofosu explained that the diesel intervention was a cushioning mechanism to prevent Ghanaians from bearing the full impact of the price increases. He noted that the diesel intervention is subject to periodic reviews, which will be conducted based on pricing windows and available evidence. The government remains committed to supporting Ghanaians from the effects of rising diesel prices, as diesel is crucial for commercial transport and businesses.

Ofosu suggested that the government might consider taking action on petrol if market conditions show similar trends; however, no final decision has been made regarding the continuation of the diesel relief.