GHS2 diesel price discount to cost about GHS200 million per month — Yilo Krobo MP

The Vice Chairman of Parliament's Energy Committee, Albert Tetteh Nyakotey, has revealed that the government's temporary GH¢2 per litre diesel price discount will cost the state an estimated GH¢200 million every month.

The government announced the diesel price reduction on August 3 as a temporary intervention to cushion consumers, prevent increases in transport fares and help contain inflationary pressures.

The measure took effect on August 4 and is expected to remain in force for one month.

Speaking on Accra-based TV3 on Thursday, August 6, the Member of Parliament for Yilo Krobo said the intervention was designed to shield Ghanaians from the ripple effects of rising fuel prices, particularly higher transport fares and the cost of living.

"The two cedis discount on the price of diesel has been given to enable the government to sit with GPRTU and hold the urge to increase transport fares... We want to do this so that the impact will not be passed on," he said.

He noted that although fuel prices are usually reviewed twice each month, the government decided to maintain the discount for a full month to help stabilise prices.

"Based on the calculation I have done, it is about GH¢200 million per month... The government has taken a commendable decision because high fuel prices lead to high transport fares, higher food costs and a higher cost of living. If the government can use that money to hold fuel prices and prevent the cost of living from going up, that is what we expect the government to do," he stated.

The lawmaker further indicated that the subsidy would be financed through revenue the government would otherwise have received from the petroleum sector.

He stressed that foregoing part of that income was necessary to ease the financial burden on Ghanaians during the current economic period.