Gov’t Revisits Diesel Subsidy Amid New Transport Fare Hike
Government faces backlash as 8% transport fare increase kicks in while diesel subsidy review begins.
The government has come under scrutiny as an 8% increase in public transport fares takes effect across Ghana.
Authorities are now set to reassess the diesel subsidy policy, which was introduced earlier this year to shield commuters from volatile fuel prices. According to government spokesperson Felix Kwakye Ofosu, the review is part of a scheduled assessment following the end of the last pricing cycle. He stated that the intervention, initially rolled out in April amid rising global oil prices linked to the Israeli-Iranian tensions, was never intended as a permanent measure.
Ofosu emphasized that diesel was specifically chosen for support due to its critical role in commercial transport and small-scale businesses. He noted that market trends will guide future decisions, with petrol potentially added to relief programs if similar price spikes occur. The move has sparked public concern over rising living costs, especially for those reliant on motorized transport in urban centers.
Although no formal date has been set for the subsidy review outcome, the government maintains it will take evidence-based action to protect lower-income citizens.
