The government has announced the temporary suspension of the GH¢1-per-litre Energy Sector Shortfall and Debt Repayment Levy (D-Levy) on diesel for October and November 2026, as part of measures to cushion consumers against rising fuel prices. Editorial Ethics & Independence
The intervention, which took effect on October 1 and is expected to remain in force until November 30, will maintain the government’s existing GH¢2-per-litre relief for diesel consumers, although the structure of the support has changed.
Under the revised arrangement, the reduction in statutory margins on diesel will decrease from GH¢2 to GH¢1 per litre. The remaining GH¢1 in relief will come from the temporary suspension of the D-Levy.
The decision means motorists and businesses will continue to benefit from a combined GH¢2 reduction per litre of diesel during the two-month period. The measure comes amid expectations of significant increases in fuel prices during the first pricing window of October.
Government responds to rising diesel prices
The suspension comes at a time when international petroleum prices and movements in the foreign exchange market are putting pressure on Ghana’s domestic fuel prices.
The Chamber of Petroleum Consumers (COPEC) had projected a 22.91% increase in diesel prices for the first pricing window of October, alongside a 5.21% increase in petrol prices.
According to COPEC’s projections, the average retail price of diesel could rise from GH¢18.24 to GH¢22.42 per litre, while petrol could increase from GH¢16.90 to GH¢17.78 per litre.
COPEC Executive Secretary Duncan Amoah attributed the expected increases mainly to rising international petroleum prices and a marginal depreciation of the Ghana cedi against the US dollar. Editorial Standards
These projections highlighted the potential pressure higher fuel costs could place on households, transport operators and businesses that rely heavily on diesel.
The government’s decision to maintain the GH¢2-per-litre intervention is intended to absorb part of the anticipated increase rather than leave consumers to bear the full impact of higher fuel prices.
However, the intervention does not guarantee that pump prices will remain unchanged, as international prices, exchange rates and other pricing components continue to influence the market.
How the revised D-Levy arrangement works
The Energy Sector Shortfall and Debt Repayment Levy forms part of the statutory charges applied to petroleum products under Ghana’s energy-sector levies framework.
The additional GH¢1-per-litre component on diesel was introduced through the Energy Sector Levies (Amendment) Act, 2025 (Act 1141).
Under the government’s latest directive, the suspension applies specifically to this additional GH¢1 component for the two-month period.
Other applicable levies, rates and charges will continue to be collected in accordance with the law. The temporary measure therefore does not amount to the abolition of the entire D-Levy or the removal of all taxes and charges on diesel. Editorial Ethics & Independence
The Ghana Revenue Authority (GRA) is expected to implement the suspension through the necessary administrative and operational arrangements, while relevant industry stakeholders, including the National Petroleum Authority (NPA), oil marketing companies and bulk distribution companies, are to be notified.
The government has indicated that further instructions concerning the levy after the suspension period will be communicated in due course.
Implications for transport operators and businesses
Diesel is an important operating expense for commercial transport operators, freight companies, construction firms, agricultural businesses and other enterprises that depend on heavy-duty vehicles and machinery.
An increase in diesel prices can raise transportation and distribution costs, potentially affecting the prices of goods and services across the economy.
For commercial drivers, higher fuel expenses can reduce daily earnings if fares or transport charges do not adjust sufficiently to cover the additional costs. Businesses may also face difficult decisions about whether to absorb the increases or pass some of them on to customers. Corrections Policy
Maintaining the GH¢2-per-litre intervention could provide some relief by reducing the effective cost of diesel compared with what consumers would otherwise pay, all other factors being equal.
However, the actual benefit will depend on how the intervention is reflected in retail prices and how other components of the fuel pricing formula change during the period.
The measure also follows an earlier government intervention that reduced statutory margins on diesel by GH¢2 per litre and was extended into September.
What happens after November?
The two-month suspension provides temporary relief while the government monitors developments in the petroleum market.
The next key question is whether the suspension will be extended, allowed to expire or replaced with another intervention after November 30.
International crude oil prices, the cedi’s performance against the US dollar and domestic fuel supply conditions will remain important factors in determining future pump prices.
For now, the government has retained the overall GH¢2-per-litre diesel intervention while changing how the relief is delivered. Newscard
Although the measure may help cushion motorists and businesses against some of the pressure from rising fuel prices, its longer-term implications will depend on market developments and the government’s decisions after the temporary suspension ends.