The National Petroleum Authority (NPA) has announced that it will revise the diesel price floor after government introduced a GH¢2 per litre subsidy aimed at cushioning consumers against rising fuel costs.

This comes after President John Dramani Mahama directed the NPA to take steps to absorb GH¢2 on every litre of diesel as part of measures to cushion consumers against recent fuel price increases.

The intervention is intended to reduce the burden of rising fuel costs on Ghanaians, particularly commercial transport operators and businesses that depend heavily on diesel.

The new price floor, which takes effect on Tuesday, will serve as the minimum price at which Oil Marketing Companies (OMCs) can sell diesel during the current pricing window.

Speaking on Joy FM's Midday News, the NPA's Director of Economic Regulation and Planning, Abass Tasunti, said the government's intervention has been factored into the petroleum price build-up, the framework used to determine the industry's price floor.

"The intervention that has been made is in the price build-up, and this price build-up is what is used to determine the price floor.

"With this intervention, what it means is that the current price floor that we set for diesel for this window will be reduced by GH¢2 per litre for diesel," he explained on Monday, August 3.

Mr Tasunti added, "We are currently working on the communiqué to the industry, the oil marketing companies, to inform them about this directive. This means that we are going to issue a new price floor today, effective tomorrow."