GH¢2 Diesel reduction may create GH¢1bn NPA Liability – Analyst

Energy analyst Kwadwo Nsafoah Poku has warned that the government’s decision to reduce diesel prices by GH¢2 per litre could result in more than GH¢1 billion in outstanding liabilities within the petroleum sector.

According to him, although the intervention provides some relief to consumers, the reduction was achieved by cutting margins that finance important operations in the petroleum value chain rather than through direct government funding.

Speaking on Eyewitness News on Wednesday, August 5, 2026, Mr Poku explained that the affected margins support activities such as fuel transportation, price stabilisation, product monitoring and infrastructure-related projects.

He cautioned that using these funds to lower fuel prices could put pressure on agencies and service providers that rely on the revenues to carry out their responsibilities.

The energy analyst noted that a similar government intervention in the past created arrears of about GH¢800 million at the National Petroleum Authority (NPA), and the latest measure could further increase the outstanding obligations.

He estimated that the one-month diesel price reduction could add approximately GH¢520 million to the existing liabilities, based on average monthly diesel consumption of about 260 million litres.

This, he said, could push the total amount owed to the NPA beyond GH¢1 billion.

“It is not the government of Ghana. It is going to sit in the books of NPA. But it is for regulatory activities. It is for service providers in the value chain,” he explained.

Mr Poku warned that the financial impact of the policy could eventually affect consumers if future fuel price adjustments are used as a means to recover the accumulated debts.

He suggested that government could have explored alternative funding options, including using additional earnings from higher crude oil prices or adjusting petroleum stabilisation mechanisms, rather than relying on industry margins.

While acknowledging the importance of making fuel more affordable for consumers, the analyst stressed that such interventions must be structured carefully to prevent creating further financial difficulties for the petroleum sector.

Prince Antwi

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