GH¢2 diesel relief not being financed with power sector funds – Energy Ministry

Ghana’s Ministry of Energy has dismissed claims that the government’s temporary GH¢2-per-litre diesel relief will be financed using funds earmarked for the power sector, insisting the measure will not compromise electricity financing or investment.

The clarification comes after concerns emerged that the one-month reduction in diesel’s regulatory margin could divert resources from Ghana’s financially constrained electricity sector, potentially widening existing funding gaps.

Speaking on Eyewitness News on Monday, Ministry spokesperson Richmond Rockson said the intervention would instead be financed through temporary adjustments to petroleum-related margins, levies and taxes, rather than transfers from funds allocated to the power sector.

“We are not taking any money from the power sector. These are margins and levies that will be due government and the industry, but there will be some suspension in some cases and some reductions in some cases to be able to deal with that,” Rockson said.

He added that the power sector operates under separate financing arrangements and would not experience funding shortfalls as a result of the diesel relief package, rejecting suggestions that taxpayers would ultimately bear the cost through reduced investment in electricity infrastructure.

The reassurance follows President John Dramani Mahama’s directive for a temporary GH¢2-per-litre reduction in diesel’s regulatory margin, effective August 4, 2026, as part of measures approved by Cabinet to cushion households and businesses from rising fuel costs.

The intervention, announced by Minister for Government Communications and Presidential Spokesperson Felix Kwakye Ofosu, applies exclusively to diesel and will remain in force for one month, leaving petrol prices unchanged.

The government’s clarification seeks to reassure investors and consumers that the targeted fuel relief will be financed within the petroleum sector without weakening the financial stability of Ghana’s electricity industry, as policymakers continue balancing cost-of-living support with fiscal sustainability.