The government’s GH¢2 per litre reduction in diesel prices will not result in a loss of government revenue, Minister of State for Government Communications Felix Kwakye Ofosu has clarified. He said the temporary relief is being funded through reductions in regulatory and industry margins rather than taxes or money from the state’s coffers.
Speaking on Channel One Television’s Face to Face programme on Wednesday, August 5, 2026, Kwakye Ofosu explained that the GH¢2 reduction was coming from margins retained by the National Petroleum Authority (NPA) and other industry players. His comments followed concerns from the opposition New Patriotic Party (NPP), which had demanded greater transparency over how the diesel price cut was being financed.
The GH¢2 diesel price reduction took effect on Tuesday, August 4, and is expected to remain in place for one month unless the government reviews the arrangement. According to the government, the intervention is aimed at preventing higher transport fares and easing pressure on households as international fuel prices continue to rise. Kwakye Ofosu said diesel was targeted because it is widely used by commercial transport operators, making changes in its price quickly felt by commuters and businesses.
The minister also linked the recent pressure on fuel prices to disruptions around the Strait of Hormuz, which contributed to a sharp rise in global crude oil prices. He expressed optimism that prices could ease in the coming weeks as local crude refining resumes at the Tema Oil Refinery, potentially reducing the freight and import costs associated with bringing petroleum products into Ghana. He added that the government plans to strengthen the country’s strategic fuel reserves, which currently provide roughly six weeks of supply.
The government’s explanation, however, comes amid continued scrutiny from the NPP. The Ranking Member on Parliament’s Energy Committee, George Kwame Aboagye, has called for details on the specific regulatory margins, levies or taxes adjusted to fund the intervention and any impact on public revenue. NPP Policy Coordination Committee Chairman Kojo Oppong Nkrumah has also argued that the one-month reduction does not reverse the broader increase in fuel prices recorded over the past 18 months, keeping the debate over Ghana’s fuel costs firmly in the spotlight.
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