The government has extended the GH¢2-per-litre subsidy on diesel for another two months as part of measures to cushion consumers against rising fuel prices.
According to reports, the extension will cover September and November 2026.
The latest arrangement, however, changes how the subsidy is financed.
Previously, the entire GH¢2 reduction was absorbed through diesel margins. Under the new mechanism, GH¢1 will be provided through a reduction in the D-Levy, while the remaining GH¢1 will come from a reduction in industry margins.
Diesel will therefore continue to receive a total subsidy of GH¢2 per litre, but the cost will be shared between government and industry.
The arrangement maintains the burden-sharing framework introduced by the government and industry on April 16, 2026.
The extension is expected to offer continued relief to motorists, commercial transport operators and businesses that depend heavily on diesel, particularly amid elevated international crude oil prices.
The government introduced the latest fuel price intervention on August 4 following a sharp increase in global oil prices.
The latest extension represents the government’s fourth intervention aimed at cushioning consumers against rising fuel costs.
The revised mechanism is expected to maintain the reduction at the pump while distributing the cost between government revenue from the D-Levy and industry margins.
