The government has extended its GH¢2 per litre reduction in the regulatory margin on diesel for another pricing window in September, in a move aimed at cushioning consumers from rising fuel prices.
The intervention, which was initially scheduled to end in August after two pricing windows, will now remain in place for at least the first pricing window of September.
The extension is expected to provide some relief to motorists, transport operators and businesses, as diesel prices currently hover around GH¢17 per litre at most Oil Marketing Companies (OMCs).
The decision follows concerns over a possible increase in petroleum prices from Tuesday, September 1, driven largely by developments on the international oil market.
The Chamber of Petroleum Consumers (COPEC) had urged the government to extend the intervention, warning that its withdrawal could push diesel prices to about GH¢19 per litre and closer to GH¢20.
COPEC Executive Secretary, Duncan Amoah, said maintaining the reduction would help cushion consumers against the expected upward adjustment.
“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,” he said in an interview with Citi Business News.
According to him, diesel prices are already around GH¢17 per litre, meaning the restoration of the GH¢2 regulatory margin could push prices significantly higher.
COPEC has also projected marginal increases in fuel prices from September 1, with petrol expected to record a notable rise.
Mr Amoah attributed the expected increase to a nearly 10% rise in the international trading price of petrol over the past two weeks.
“Fuel prices are likely to inch up from the first window September. Petrol most likely, since it’s done almost 10% to close trading over the past two-week window,” he added.
The government introduced the GH¢2 per litre reduction in the regulatory margin on diesel on August 4, following a surge in international oil prices that drove up domestic fuel costs.
The extension marks another intervention by government to mitigate the impact of rising global oil prices on consumers.
Beyond the immediate relief at the pumps, the measure is expected to help limit increases in transportation, logistics and operating costs, which could otherwise feed into the prices of goods and services.
With diesel playing a major role in transportation and commercial activities, the extension could also offer some relief to households and businesses facing higher operating costs.
