Gov't expected to absorb GH¢2 on diesel, 36ps on petrol as fuel relief measures

Government is set to roll out significant fuel price reductions beginning in the next pricing window, absorbing up to GH¢2 per litre of diesel and 36 pesewas per litre of petrol. The intervention follows an emergency Cabinet meeting held last week, where key decisions were taken to suspend selected taxes, margins, and levies on petroleum products amid rising global prices driven by tensions linked to the Middle East conflict. Under the new measures, Oil Marketing Companies (OMCs) are anticipated to reflect the reductions in prices announced from this evening, ahead of implementation tomorrow, Thursday, April 16.

Diesel is expected to see the most significant adjustment, with the government absorbing GH¢2 per litre. Petrol will also see a reduction of 36 pesewas per litre as part of the broader relief package. The move is seen as a direct response to sustained pressure from transport operators and industry groups, including the Commercial Public Road Transport sector, over rising fuel costs and their impact on fares and the cost of living. Preliminary estimates from the petroleum industry suggest the policy could cost the state approximately GH¢553 million over one month. Breakdown of the projections indicates that with monthly diesel consumption estimated at 210 million litres, the GH¢2 per litre absorption could amount to roughly GH¢460 million. For petrol, with an estimated monthly consumption of 258 million litres, the 36 pesewa reduction is expected to cost about GH¢93 million.

The policy is expected to be reviewed after one month to determine its sustainability and whether it should be extended, adjusted, or withdrawn.