Ghana: NPP Demands Revenue Blueprint For GH¢2 Diesel Cut Amid Energy Sector Warnings

Ghana’s main opposition party, the New Patriotic Party (NPP), has questioned the fiscal basis of President John Dramani Mahama’s temporary GH¢2-per-litre diesel price reduction, describing it as an unsustainable and unbudgeted political intervention.

“Even if the full GH¢2.00 reduction is passed through at the pump, diesel would still be about 11.4% above its January 2025 level. So let us be accurate about what the intervention is. It cushions part of the increase that has already happened,” the NPP said.

The Minority said the relief, which took effect on Tuesday, Aug. 4, is only a short-term measure that does not address Ghana’s deeper energy sector challenges.

Speaking at a press briefing in Parliament on Wednesday, George Kwame Aboagye, Ranking Member of Parliament’s Energy Committee, and Kojo Oppong Nkrumah, Chairman of the NPP Policy Coordination Committee, called on the government to explain how the intervention is being financed.

“We therefore put the following questions to the government. First, which specific margins, levies or taxes are being reduced to finance the GH¢2.00 diesel relief, and what is the total revenue loss?” the opposition said.

The NPP argued that the government must disclose which margins, levies or downstream taxes are being reduced to absorb the price cut and estimate the total revenue forgone during the one-month intervention.

The party said diesel prices, which stood at about GH¢15.49 per litre in January 2025, remain elevated despite the concession, with pump prices still around GH¢19.26 per litre. It also cited the passage of the Energy Sector Levies (Amendment) Bill, 2026, by Parliament on July 31, saying higher fuel-related charges could offset the benefit of the diesel relief.

The Minority also referred to the World Bank’s downgrade of Ghana’s energy sector recovery programme, saying it reflected rising sector debt, weak tariff structures and unpredictable regulatory interventions.

It argued that the temporary diesel price cut, if not properly budgeted, could worsen the fiscal pressures facing the energy sector.

The NPP also opposed the Public Utilities Regulatory Commission’s recent 2.45% electricity tariff increase, saying utility costs should not be rising while international fuel input prices have eased.

The party called for a transparent mechanism to ensure the diesel price reduction leads to lower transport fares and reduced prices of goods and services.

It also called for monthly audits of energy sector revenue collections and stronger parliamentary oversight to help improve fiscal discipline and stability in the sector.