The government has extended its ¢2 per litre reduction in the regulatory margin on diesel into the first pricing window of September, continuing efforts to cushion consumers against rising fuel prices.

The reduction was initially introduced as a temporary measure covering two pricing windows and was expected to expire at the end of August.

However, the government has decided to maintain the reduction for at least one more pricing window, preventing the full regulatory margin from being restored to the price of diesel.

Diesel is currently selling at around ¢17 per litre at most Oil Marketing Companies (OMCs).

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

The government introduced the ¢2 reduction on August 4 following a surge in global oil prices.

The latest extension marks the third government intervention aimed at cushioning consumers against rising fuel prices.