Diesel relief not funded from power sector resources - Energy Ministry

The Ministry of Energy and Green Transition dismissed claims on Monday, August 3, that the government's decision to reduce the regulatory margin on diesel by GH¢2.00 per litre will be financed with funds meant for the power sector. The Ministry stated the temporary measure will not affect electricity financing, insisting the intervention is being funded through adjustments to petroleum-related margins, levies, and taxes rather than resources allocated to the energy sector.

The clarification followed concerns raised after President John Dramani Mahama approved a one-month reduction in the regulatory margin on diesel, which takes effect on Tuesday, August 4, 2026. This measure applies only to diesel and forms part of Cabinet-approved interventions aimed at easing the cost of living. Ministry spokesperson Richmond Rockson explained that the government was only suspending or reducing certain petroleum-related margins and levies due to the state and the industry, stressing that no money earmarked for electricity financing was being redirected. He stated, "…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."