Government extends GH¢2 diesel subsidy for September

Government has decided to extend the GH¢2 per litre reduction in the regulatory margin on diesel for the next pricing window to cushion consumers against rising petroleum prices.

The decision Citi Business News understands follows growing concerns over an expected increase in fuel prices at the pumps from the first pricing window of September.

The intervention, which was originally introduced as a temporary measure for two pricing windows, was expected to expire at the end of August.

However, government has opted to maintain the reduction at least for the next pricing window, effectively preventing the full GH¢2 per litre regulatory margin from being restored to diesel prices.

The development will come as relief to motorists, transport operators and businesses, particularly as diesel prices are already selling at around GH¢17 per litre at most Oil Marketing Companies (OMCs).

The Chamber of Petroleum Consumers (COPEC) had been pressing government to extend the intervention, warning that allowing it to expire could push diesel prices close to GH¢20 per litre.

Executive Secretary of COPEC, Duncan Amoah, argued that maintaining the intervention would help cushion consumers from the expected upward adjustment in petroleum prices.

“Government originally had indicated it was going to do that for just two window periods, which is a month. We would want to plead that at least the next two weeks be considered again. Already diesel is around GH¢17 a litre for most of the OMCs.