Drivers Question Withdrawal Of Diesel Subsidy Despite Price Drop

Drivers are expressing concern after the government ended the remaining diesel subsidy ahead of the second pricing window of June, arguing that the decision comes too soon despite recent reductions in fuel prices.

The government on Tuesday discontinued the GH¢1.07 per litre diesel relief that was introduced earlier this year to cushion consumers from rising fuel costs linked to global market pressures.

The move effectively brings to an end all temporary fuel price support measures introduced in April.  

The decision comes at a time when fuel prices are expected to fall, with industry projections indicating that petrol prices could decline by about 9.3%, while diesel prices are expected to reduce by approximately 1.7% during the latest pricing window.  

However, some commercial drivers say the reduction in fuel prices alone does not reflect the broader economic pressures they continue to face.

Speaking to 3Music TV, the drivers argued that operational costs such as vehicle spare parts, maintenance, insurance, taxes and daily living expenses remain high, making it difficult to feel the full benefits of lower fuel prices.

They maintained that while the government may be responding to improving fuel market conditions, removing the subsidy at this stage is premature because many transport operators are still struggling with the cumulative effects of recent economic challenges.

The drivers also noted that diesel powers a significant portion of commercial transportation and goods movement across the country, and any withdrawal of government support could eventually affect transport costs if fuel prices begin to rise again.

Others questioned whether the expected reduction in pump prices would be enough to offset the impact of the subsidy’s removal, insisting that transport operators need more sustained relief measures to remain profitable.

The government had initially absorbed GH¢2.00 per litre on diesel and GH¢0.36 per litre on petrol in April to cushion consumers from fuel price volatility. The petrol relief was later withdrawn, while the diesel subsidy was reduced to GH¢1.07 per litre before being completely scrapped this week.  

Meanwhile, some drivers confirmed that a few Oil Marketing Companies have reviewed petroleum product prices to reflect the latest adjustments, while major companies like Total and Shell have yet to revise their prices. The drivers say they hope to see the reductions by the close of day.