The Ministry of Energy and Green Transition has dismissed claims 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 said the temporary measure will not affect electricity financing, insisting that the intervention is being funded through adjustments to petroleum-related margins, levies and taxes rather than resources allocated to the energy sector.

The clarification follows concerns raised after President John Dramani Mahama approved a one-month reduction in the regulatory margin on diesel to cushion consumers against rising fuel prices. The measure, which takes effect on Tuesday, August 4, 2026, applies only to diesel and forms part of Cabinet-approved interventions aimed at easing the cost of living.

Government has maintained that the initiative is a temporary relief package and will not undermine ongoing efforts to finance electricity generation and other power sector obligations.

Speaking on Citi FM on Monday, August 3, the Ministry's spokesperson, Richmond Rockson, rejected suggestions that the diesel intervention would create a funding gap for the power sector.

He 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.

"…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," he said.

Mr Rockson further stated that the power sector has separate financing arrangements and would continue to receive the resources required for its operations, dismissing claims that taxpayers would eventually bear the cost through reduced investment in electricity infrastructure.