Gov’t to suspend GH¢1 D-Levy on diesel for October and November

The government is set to suspend the GH¢1-per-litre Energy Sector Shortfall and Debt Repayment Levy (D-Levy) on diesel for October and November, while maintaining the existing GH¢2-per-litre relief for diesel consumers.

MyJoyOnline sources within government say the adjustment will change the structure of the intervention rather than its overall value.

Instead of absorbing the full GH¢2 through reductions in statutory margins, government will now provide GH¢1 through margin reductions and the remaining GH¢1 by suspending the D-Levy.

This means motorists will continue to receive a total GH¢2 reduction on every litre of diesel during the two-month period. The arrangement is expected to cushion consumers as petroleum prices come under renewed pressure from movements on the international market.

The decision comes ahead of the first pricing window for October, with the Chamber of Petroleum Consumers (COPEC) forecasting significant increases in both petrol and diesel prices. COPEC projects petrol to rise by 5.21%, while diesel could record a 22.91% increase from Thursday, October 1.

The latest intervention follows earlier government measures to cushion diesel consumers, including the continuation of a GH¢2-per-litre reduction in the regulatory margin during September.

COPEC’s latest projection puts the average price of diesel at about GH¢22.42 per litre, up from GH¢18.24, while petrol is projected to rise from GH¢16.90 to GH¢17.78 per litre.

The Chamber attributed the expected increases largely to higher international petroleum prices and a marginal depreciation of the cedi against the US dollar.

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DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.