Government has extended the GH¢2-per-litre subsidy on diesel for two more months as it continues its efforts to cushion consumers from rising fuel prices.

JoyBusiness understands that the intervention will cover September and November 2026.

However, the mechanism for funding the subsidy has changed from the previous arrangement.

Under the earlier arrangement, the full GH¢2 reduction was taken from the diesel margins.

The latest mechanism involves a GH¢1 reduction in the D-Levy on diesel and another GH¢1 reduction in the margins.

This means diesel will continue to receive a total subsidy of GH¢2 per litre, but the cost will now be shared between the government and industry through the reduction in the D-Levy and margins.

The intervention maintains the government-industry burden-sharing arrangement introduced on April 16, 2026.

The extension is expected to provide some relief to motorists, commercial transport operators and businesses that rely heavily on diesel, particularly amid elevated international crude oil prices.

The government introduced the latest fuel price intervention on August 4 following a surge in global oil prices.

The extension marks the government's fourth intervention to cushion consumers against rising fuel prices.

However, JoyBusiness understands there are concerns over outstanding payments to oil marketing companies for the subsidy extended in August.

The latest arrangement is therefore expected to provide continued relief at the pump while spreading the cost of the intervention between government revenue from the D-Levy and industry margins.