Government has introduced a package of measures expected to keep diesel prices below GH¢20 per litre in the first pricing window of October, despite projections that pump prices could have risen to about GH¢22.
The interventions were agreed at an emergency meeting between government and key stakeholders in the petroleum sector as international fuel prices continue to exert pressure on the domestic market.
Chief Executive Officer of the National Petroleum Authority (NPA), Godwin Edudzi Tamakloe, said the measures were designed to absorb part of the expected increase and prevent the full impact from being passed on to consumers.
Under the arrangement, Sentuo Oil Refinery and Tema Oil Refinery (TOR) have agreed to maintain the prices at which they supply petroleum products to Bulk Distribution Companies (BDCs) at the levels recorded during the previous pricing window.
The government has also suspended the GH¢1 Energy Sector levy, commonly referred to as the D-Levy, on diesel for October.
Mr Tamakloe said the combination of the refinery price freeze and the temporary levy suspension would significantly reduce the expected increase in diesel prices.
“Basically, what we’ve agreed today is that Sentuo and TOR will maintain the price they sell to the BDCs at the last pricing window,” he said.
He explained that holding refinery prices at their previous levels would help cushion the domestic market against the impact of rising international petroleum prices.
The NPA chief executive further disclosed that the Finance Minister had agreed to suspend the GH¢1 levy for October, although the measure could be reviewed depending on developments in the petroleum market.
Before the latest interventions, government projections indicated that diesel could have reached approximately GH¢22 per litre in the October pricing window.
Mr Tamakloe said the measures would instead result in a pump price below GH¢20 per litre.
“Now, through government’s intervention, we’ll be doing below GH¢20. Government feels that it needs to intervene,” he stated.
The interventions come as international petroleum prices rise, raising concerns about the effect of higher fuel costs on transport operators, businesses and households.
The measures are expected to take effect with the commencement of the first pricing window for October as government seeks to limit the immediate impact of global market pressures on Ghanaian consumers.
