Ghana Government to Suspend D-Levy on Diesel in October and November to Cushion Consumers

• The government plans to suspend the GH¢1-per-litre Energy Sector D-Levy on diesel for October and November
• The move comes as COPEC projects diesel prices to surge by nearly 23% from October 1, 2026
• Transport fares have already climbed by 8% ahead of the anticipated fuel price increases

The government is preparing to suspend the Energy Sector Shortfall and Debt Repayment Levy, commonly known as the D-Levy, on diesel for October and November 2026, per Citi News reports.

The D-Levy currently stands at GH¢1 per litre. Its suspension forms part of a restructured intervention that keeps the total support to consumers at GH¢2 per litre on diesel, though the composition of that support is shifting.

Previously, the full GH¢2-per-litre relief came through reductions in statutory margins. Under the revised arrangement, statutory margin reductions will be lowered to GH¢1 per litre, with the suspended D-Levy providing the remaining GH¢1.

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The net effect for motorists remains unchanged at GH¢2 per litre. The timing of the adjustment is significant.

The Chamber of Petroleum Consumers (COPEC) issued a statement on Tuesday, September 29, 2026, signed by Executive Secretary Duncan Amoah, projecting a sharp rise in fuel prices for the first pricing window of October.

COPEC forecast a 5.21% increase in petrol prices and a 22.91% rise in diesel prices effective Thursday, October 1, 2026.

Fuel Price Projections and Impact on Transport

According to COPEC's projections, average retail petrol prices are expected to climb from GH¢16.90 to GH¢17.78 per litre.

Diesel prices face a steeper jump, rising from GH¢18.24 to GH¢22.42 per litre. COPEC attributed the projected increases to higher international petroleum prices and a marginal depreciation of the Ghana cedi against the US dollar.

The anticipated price hikes have already fed through to transport costs, with fares rising by 8% ahead of the October adjustment.

By maintaining the GH¢2-per-litre intervention on diesel, the government aims to shield consumers from a portion of the projected increase, even as the mechanism through which that relief is delivered changes from statutory margin reductions to a temporary levy suspension.

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IMF support for dumsor levy

Yen.com.gh reported that the tax increase was to generate additional revenue to settle outstanding debts and support critical energy infrastructure.

The International Monetary Fund backed the tax increase on fuel products as important to fiscal stability.

The government assured that it will continue to monitor the impact of the levy increase and maintain engagement with industry players.

Source: YEN.com.gh