Government's GH¢2 diesel subsidy offers timely relief, not a long-term solution - IES

The Institute for Energy Security (IES) welcomed the government's decision to subsidise diesel by GH¢2 per litre, describing it as a timely intervention that will help cushion consumers against rising fuel prices and ease inflationary pressures. Speaking on Joy FM's Top Story on Monday, August 3, Senior Research and Policy Analyst at IES, Derek Emmanuel Xatse, said the announcement aligns with the institute's earlier recommendation that government step in to protect consumers from the impact of surging global oil prices. "That is good news for all Ghanaians because IES earlier this morning also put out a press release suggesting that government should act immediately to cushion consumers. Having this response is good news for all Ghanaians and stakeholders in the energy sector," he said.

Mr. Emmanuel Xatse noted that rising fuel prices affect every segment of the economy, including commercial operators, private businesses, and individual consumers. He stated, "One way or the other, we are all affected, whether for commercial activities, private businesses or other things." While welcoming the intervention, Mr. Emmanuel Xatse would have preferred the subsidy to also cover petrol consumers. He cautioned that the subsidy is unlikely to be sustainable over an extended period due to the significant financial cost involved.