Gov’t Intervenes To Prevent Diesel Price Hitting GH¢22
The Chief Executive Officer (CEO) of the National Petroleum Authority (NPA), Godwin Edudzi Tamakloe, has announced government interventions to prevent diesel prices from rising to the projected GH¢22 per litre as the first pricing window of October takes effect.
The measures were agreed at an emergency meeting between government and key players in the petroleum sector to cushion consumers against rising international fuel prices.
Under the intervention, Sentuo Oil Refinery and Tema Oil Refinery (TOR) will maintain the prices at which they sell petroleum products to Bulk Distribution Companies (BDCs) at the levels recorded during the previous pricing window.
Government has also suspended the GH¢1 Energy Sector Levy, or D-Levy, on diesel for October.
Mr. Tamakloe said the measures are expected to significantly limit the increase in pump 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 the Finance Minister had agreed to suspend the GH¢1 levy for October, although it could be restored depending on developments in the market.
According to the NPA CEO, projections before the intervention indicated that diesel could have reached about GH¢22 per litre.
“Now, through government’s intervention, we’ll be doing below GH¢20. Government feels that it needs to intervene,” he stated.
The measures are expected to take effect with the first pricing window of October as government seeks to shield consumers from the full impact of rising international fuel prices.
The intervention follows concerns over a sharp increase in international petroleum prices, which threatened to push domestic fuel prices significantly higher during the October pricing window.
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