COPEC welcomes GH¢2 diesel subsidy but urges gov’t to pursue long-term fuel strategy

The Chamber of Petroleum Consumers (COPEC) has welcomed President John Dramani Mahama’s directive for government to absorb GH¢2 on every litre of diesel, describing the intervention as a positive move but cautioning against relying on short-term measures to manage fuel price increases. COPEC Executive Secretary Duncan Amoah said the decision was necessary following the sharp rise in diesel prices, which had pushed the cost of the product close to GH¢20 per litre at some fuel stations. Speaking on Joynews The Pulse, Mr Amoah said the intervention would provide relief to consumers, particularly commercial drivers and businesses affected by rising fuel costs.

“I do think that the government must intervene. It was a very positive intervention,” he said. He explained that the decision to focus specifically on diesel was influenced by the significant gap that had emerged between diesel and petrol prices.

According to him, while petrol prices were around GH¢14 to GH¢15 per litre, diesel prices had risen to about GH¢19 and were approaching GH¢20 per litre at some pumps. “A situation where the person driving a diesel engine is paying 19 Ghana cedis, approaching 20 Ghana cedis, whereas the one paying for petrol was paying about 14, 15 Ghana cedis—a variance of almost four Ghana cedis was quite significant,” he said. Mr Amoah, however, suggested that some relief could also have been extended to petrol users, given the general pressure on consumers.

“I would have wished that some 20 pesewas could equally have been given to petrol users so that they also get some relief. But it is simply down to the trend,” he added. While welcoming the intervention, the COPEC Executive Secretary warned that fuel subsidies could place pressure on government finances and should not become a permanent solution.

He called for the establishment of a strategic fuel reserve system that would allow Ghana to purchase petroleum products when international prices are favourable and provide protection when global prices rise. “This intervention is not one the government should rely on. Government should quickly find a way to move towards the strategic reserve programme module,” he said.

Mr Amoah argued that such a system would reduce Ghana’s exposure to global fuel price volatility and help prevent sudden increases at the pump. Mr Amoah also noted that some Oil Marketing Companies (OMCs) had alrea… The National Petroleum Authority (NPA) has announced that it will revise the diesel price floor after government introduced a GH¢2 per litre subsidy aimed at cushioning consumers against rising fuel costs.