The government is reviewing its diesel subsidy as the new 8% increase in public transport fares takes effect.

Government spokesperson Felix Kwakye Ofosu says the review will determine whether the current relief on diesel prices should be renewed.

The Abura Asebu-Kwamankese MP said the intervention was introduced in April after global crude oil and petroleum product prices began rising amid the Israeli-Iranian-US conflict.

“Government stepped in to put in place this cushioning mechanism so that Ghanaians do not have to bear the full effects of it,” he said on Joy News’ PM Express on Wednesday.

According to him, the diesel intervention has always been subject to periodic reviews.

“So once the pricing window, the last pricing window has come to an end, and a new one is coming, the same review is going to be carried out, and based on the projections that are made, based on the evidence available, appropriate responses will be fashioned out,” he said.

His comments come as transport operators implement an 8% fare increase, raising concerns about the potential impact of fuel prices on commuters.

Mr Ofosu said the government remains committed to cushioning Ghanaians from the effects of rising diesel prices.

“But government remains committed to the principle that it has established since April to push Ghanaians against the effects of diesel,” he said.

He explained that diesel was specifically targeted because of its importance to commercial transport and other businesses.

“No, it is diesel because that is what the studies done by the transport ministry and other stakeholders show: diesel is the industrial fuel,” he said.

“It’s a product used by many commercial operators, so that one has a direct effect on the maturing public,” he added.

Mr Ofosu said the government could also consider action on petrol if market conditions begin to show similar trends.

“But if, if you like, gasoline or petrol, as we call it, begins to show signs of similar behaviour, I think that a topic action will be taken,” he said.

He stressed that no final decision has yet been announced on the continuation of the diesel relief.

“A review happens at the end of every pricing window,” he said, adding, “The review is ongoing. So the outcome will be made public as and when.”