Government has ruled out diesel prices rising to GH¢22 per litre as the first pricing window of October takes effect, following interventions aimed at cushioning consumers from rising fuel prices.
The measures were agreed at an emergency meeting between government and key players in the petroleum sector to mitigate the impact of rising international fuel prices on consumers.
As part of the intervention, Sentuo Oil Refinery and Tema Oil Refinery (TOR) have agreed to 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 (D-Levy) on diesel for October, with the measure expected to further limit the anticipated increase in pump prices.
Chief Executive Officer of the National Petroleum Authority (NPA), Godwin Edudzi Tamakloe, announced the measures after the meeting, explaining that the interventions are intended to prevent diesel prices from reaching the projected level of GH¢22 per litre.
“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.
Mr Tamakloe explained that maintaining the refinery prices would help mitigate the impact of escalating petroleum prices on the domestic market.
He added that the Finance Minister had also agreed to suspend the GH¢1 levy for October, although the levy could be restored if market conditions change.
According to the NPA CEO, projections before the intervention indicated that diesel could sell at about GH¢22 per litre during the October pricing window.
“Now, through government’s intervention, we’ll be doing below GH¢20. Government feels that it needs to intervene,” he stated.
The interventions are expected to take effect with the first pricing window of October as government seeks to contain the impact of rising fuel prices on consumers.