The New Patriotic Party (NPP) Policy Committee on Energy has dismissed the government’s recently announced GH¢2 per litre reduction in diesel prices as a temporary measure that fails to address the underlying burden on consumers, insisting that Ghanaians deserve greater accountability over how the intervention is being financed.
Addressing a press conference on Wednesday, Co-chair of the committee, George Kwame Aboagye, argued that the reduction should not be presented as a major relief when fuel prices remain significantly higher than they were at the beginning of 2025.
“The two-city reduction is not generosity. It is a partial temporary return to money already taken from consumers at midnight,” Mr Aboagye said.
He explained that while the government has announced a GH¢2 reduction in diesel prices for one month, consumers have already been paying an additional GH¢1 per litre through the Energy Sector Levies Amendment Act introduced in 2025 to help settle energy sector debts.
According to him, the temporary reduction merely offsets part of the increases motorists have absorbed over the past year.
Mr Aboagye noted that despite the appreciation of the Ghana cedi from about GH¢14.70 to GH¢11.67 against the US dollar, petrol prices remain about 5.7 per cent higher than in January 2025, while diesel prices are approximately 24.3 per cent higher over the same period.
He said even if the entire GH¢2 reduction is passed on to consumers, diesel prices would still be about 11.4 per cent above their January 2025 levels.
“It cushions part of the increase that has already happened. It does not reverse it, and it does not return households and businesses to where they stood 18 months ago,” he stated.
The committee also questioned the cost of the intervention, estimating that the latest diesel relief could result in about GH¢400 million in forgone government revenue for the month. Combined with previous fuel price interventions, it said the cumulative fiscal cost could reach approximately GH¢1.3 billion.
According to the NPP, the government has not disclosed whether the intervention is funded through the national budget or by reducing revenues earmarked for the energy sector.
Mr Abuaji maintained that “there is no free relief,” arguing that someone would ultimately bear the cost.
The committee further raised concerns over the continued implementation of the GH¢1 per litre fuel levy introduced last year, questioning why the levy remains in force while government announces temporary price reductions.
Beyond the fuel relief, the NPP cited the World Bank’s recent downgrade of Ghana’s Energy Sector Recovery Programme from “Moderately Satisfactory” to “Unsatisfactory” as evidence that the country’s energy sector challenges persist despite increased revenue mobilisation.
The committee announced that its Members of Parliament would file urgent questions demanding full disclosure of the financing behind the diesel price intervention, whether the GH¢1 fuel levy will remain in place during the relief period, and how the government intends to prevent additional fiscal pressures.
It also pledged to monitor monthly energy sector levy collections, refunds to industry, and fuel price movements against exchange rate changes to ensure greater transparency in the sector.
CREDIT: MAVIS FANTEVI