The Ghanaian government has announced plans to suspend the Energy Sector D-Levy on diesel for October and November 2026. This move aims to cushion consumers from anticipated fuel price increases. The D-Levy, currently GH¢1 per litre, will be suspended as part of a restructured intervention to maintain total support to consumers at GH¢2 per litre on diesel. The composition of this support is shifting from statutory margin reductions to a temporary levy suspension.
The Chamber of Petroleum Consumers (COPEC) had projected a sharp rise in fuel prices for October 1, 2026. According to COPEC's projections, diesel prices are expected to surge by nearly 23%, rising from GH¢18.24 to GH¢22.42 per litre. Petrol prices are also expected to increase by 5.21%, climbing from GH¢16.90 to GH¢17.78 per litre. These projected increases are attributed to higher international petroleum prices and a marginal depreciation of the Ghana cedi against the US dollar.
The anticipated price hikes have already impacted transport costs, with fares rising by 8% ahead of the October adjustment. To shield consumers from a portion of the projected increase, the government will maintain the GH¢2-per-litre intervention on diesel. Although the mechanism for delivering this relief is changing, the net effect for motorists remains unchanged. The revised arrangement involves lowering statutory margin reductions to GH¢1 per litre, with the suspended D-Levy providing the remaining GH¢1.
The government's decision to suspend the D-Levy on diesel for October and November is aimed at cushioning consumers from the impact of rising fuel prices. This move is part of a broader effort to mitigate the effects of the projected price increases on consumers. The International Monetary Fund had previously backed the tax increase on fuel products as important to fiscal stability.
The Energy Sector Shortfall and Debt Repayment Levy, commonly known as the D-Levy, was introduced to generate additional revenue to settle outstanding debts and support critical energy infrastructure. The government assured that it will continue to monitor the impact of the levy increase and maintain engagement with industry players.
COPEC's Executive Secretary, Duncan Amoah, signed a statement on September 29, 2026, highlighting the projected fuel price increases. The statement noted that the increases are driven by higher international petroleum prices and a marginal depreciation of the Ghana cedi against the US dollar.
The government's intervention on diesel prices aims to shield consumers from a portion of the projected increase. The suspension of the D-Levy on diesel for October and November will provide relief to consumers, while the revised arrangement maintains the total support to consumers at GH¢2 per litre.
Key points
- The Ghanaian government plans to suspend the GH¢1-per-litre Energy Sector D-Levy on diesel for October and November 2026.
- COPEC projects diesel prices to surge by nearly 23% from October 1, 2026.
- The government's intervention aims to shield consumers from a portion of the projected fuel price increases.
