The GH¢2 per litre reduction in diesel prices will not affect government revenue, contrary to concerns raised by the opposition New Patriotic Party (NPP), the Minister of State in charge of Government Communications, Felix Kwakye Ofosu has said.
He explains that the temporary GH¢2 per litre reduction in diesel prices is being financed through a reduction in regulatory margins and not from taxes or state revenue.
Speaking in an interview on Channel One television's Face to Face programme on Wednesday, August 5, 2026, Kwakye Ofosu said the GH¢2 reduction came from the margin retained by the regulator - National Petroleum Authority - and industry players and not from government funds.
His comment followed calls by the NPP for the government to disclose how the diesel price relief was being funded.
The government on Monday announced the reduction for implementation for one month from Tuesday, August 4, 2026.
The government said the reduction, which applies only to diesel, would remain in force for one month unless reviewed. It said the intervention was intended to prevent an increase in transport fares and reduce pressure on the cost of living following rising international fuel prices.
Mr Kwakye Ofosu said the arrangement meant there would be no loss of tax revenue to the state.
"The GH¢2 is not coming from government revenue. It is coming from the margin taken by the regulator and industry players," he explained.
Mr Kwakye Ofosu said the diesel price intervention differed from the recent increase in electricity tariffs, which he said resulted from an International Monetary Fund condition requiring the cost of fuel used in electricity generation to be reflected in tariff calculations.
He said the Cabinet approved the measure after global crude oil prices increased sharply following disruptions linked to the closure of the Strait of Hormuz.
He said the government chose to intervene in diesel prices because diesel remained the main fuel for commercial transport, and any increase in its price quickly translated into higher transport fares and increased living costs.
He expressed optimism that fuel prices would decline further in the coming weeks following the resumption of local crude oil refining at the Tema Oil Refinery.
According to him, local refining would reduce freight and import costs associated with petroleum products brought into the country.
Mr Kwakye Ofosu added that the government intended to strengthen the country's strategic fuel reserves to reduce the impact of future global fuel price shocks. He said Ghana's current strategic reserves provided about six weeks of supply.
The explanation comes after the NPP questioned the source of funding for the diesel price relief.
The Ranking Member on Parliament's Energy Committee, Mr George Kwame Aboagye, asked the government to state which regulatory margins, levies or taxes had been adjusted to finance the intervention and to indicate any resulting loss in revenue.
The Chairman of the NPP's Policy Coordination Committee, Mr Kojo Oppong Nkrumah, also argued that the reduction was temporary and did not reverse the increase in fuel prices recorded over the past 18 months.
