Rising fuel prices: Gov’t suspends GH¢1 D-Levy on diesel for 2 months

• Government will suspend the GH¢1 D-Levy on diesel for October and November.

• The total diesel intervention will remain at GH¢2 per litre.

• COPEC projects diesel to rise to GH¢22.42 per litre from October 1.

According to a report by Citi Newsroom, the government will maintain its total GH¢2-per-litre intervention on diesel, but change how the relief is funded.

Under the revised arrangement, the reduction in statutory margins will be lowered from GH¢2 to GH¢1 per litre, while the remaining GH¢1 will come from the temporary suspension of the D-Levy.

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This means diesel consumers will continue to receive GH¢2 per litre in relief during the two-month period, despite the change in the structure of the intervention.

The move comes amid projections of a significant increase in fuel prices during the first pricing window of October.

The Chamber of Petroleum Consumers (COPEC) has projected a 22.91% increase in diesel prices, from GH¢18.24 to GH¢22.42 per litre. It also expects petrol prices to rise by 5.21%, from GH¢16.90 to GH¢17.78 per litre.

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COPEC attributed the projected increases mainly to higher international petroleum prices and a 1.20% depreciation of the Ghana cedi against the US dollar during the pricing window. Crude oil prices also increased from US$103.07 to US$124 per barrel.

The latest intervention follows earlier measures by the government to limit the impact of rising diesel prices, including the GH¢2-per-litre reduction in the regulatory margin introduced in August and extended into September.

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The continued intervention is expected to offer some relief to motorists and businesses as higher diesel costs put pressure on transport and operating expenses.