Goverment extends GH¢2 diesel subsidy for two more months

The government has extended the GH¢2-per-litre diesel subsidy for September and November 2023, aiming to cushion diesel users from soaring prices while global crude costs remain high.

This marks the fourth time since August that the state has stepped in to soften fuel costs, a move driven by persistently elevated international oil prices. The latest extension builds on an arrangement first launched on April 16, 2023, when a shared burden model between the state and industry was introduced.

Under the new framework, a GH¢1 cut is applied to the D-Levy and another GH¢1 comes from reduced industry margins, maintaining the total GH¢2 relief per litre but shifting how the cost is distributed.

Motorists, commercial drivers and transport firms stand to benefit directly, as the price drop continues to ease operating expenses in a sector under pressure from inflation and logistics strains.

There are rising concerns, however, about unpaid subsidy claims owed to oil marketing companies from previous interventions, which could affect the smooth rollout of future relief measures.