Government to Suspends GH¢1 Diesel Levy as Fuel Prices Set to Rise

The government is set to temporarily suspend the GH¢1-per-litre Energy Sector Shortfall and Debt Repayment Levy (D-Levy) on diesel for October and November.

The move is expected to allow the government to maintain its existing GH¢2-per-litre intervention on diesel, although the relief will now be funded through a different combination of measures.

Under the revised arrangement, the reduction in statutory margins will be reduced from GH¢2 to GH¢1 per litre, while the additional GH¢1-per-litre relief will be provided through the temporary suspension of the D-Levy.

Motorists will, therefore, continue to benefit from a total GH¢2-per-litre intervention on diesel, with GH¢1 coming from reduced statutory margins and the remaining GH¢1 from the suspension of the levy.

The decision comes ahead of an expected sharp increase in petroleum prices during the first pricing window of October.

The Chamber of Petroleum Consumers (COPEC) has projected a 5.21% increase in petrol prices and a 22.91% rise in diesel prices effective Thursday, October 1, 2026.

In a statement issued on Tuesday, September 29, and signed by its Executive Secretary, Duncan Amoah, COPEC attributed the anticipated price adjustments largely to rising international petroleum prices and a marginal depreciation of the Ghana cedi against the US dollar.

Based on the projection, the average retail price of petrol is expected to rise from GH¢16.90 to GH¢17.78 per litre.

Diesel prices, meanwhile, are projected to increase from GH¢18.24 to GH¢22.42 per litre.

The anticipated increase in fuel prices has already triggered an 8% adjustment in transport fares.

The continued GH¢2-per-litre government intervention on diesel is consequently expected to provide some relief to consumers as the latest fuel price adjustments take effect.

However, the revised arrangement changes how the intervention is financed, with part of the relief now coming from the temporary suspension of the D-Levy rather than from statutory margin reductions alone.