COMAC Flags Local Fuel Tax as Bigger Threat Than Global Market Volatility
The Chamber of Oil Marketing Companies (COMAC) has clarified its concerns over the government’s new Energy Sector Levy, emphasizing that its objection lies not with the tax itself, but with the abrupt manner in which it was to be implemented.
The GH¢1-per-litre levy on petroleum products was originally scheduled to take effect on June 9, but following strong pushback from industry stakeholders, the implementation has been postponed to June 16.
Speaking on Channel One TV on Monday, June 9, COMAC CEO Dr. Riverson Oppong explained that oil marketing firms were unprepared—both financially and logistically—for such sudden enforcement.
He stressed that tax-related fuel price increases are fundamentally different from those driven by global market fluctuations, as they require immediate and significant upfront capital, putting pressure on the liquidity of local companies.
“When fuel prices increase due to global commodity price shifts, it’s completely different from tax-driven increases,” Dr. Oppong noted.
“What the public doesn’t know is that taxes are prepaid or bonded. That means oil marketing companies must raise capital before lifting.”
Dr. Oppong further detailed the operational strain this would place on businesses, using a common delivery volume as an example:
“To lift just 10 trips of a 58,000-litre BRV per day for a week, you’d need to raise no less than GH¢2 million in advance. Which bank can give us that kind of capital on such short notice to pay the GRA? These are the real challenges,” he explained.
While reaffirming the Chamber’s support for national revenue mobilization, COMAC warned that enforcing a major policy without adequate lead time could disrupt supply chains and destabilize the downstream sector.
The Chamber welcomed the government’s decision to delay the levy’s rollout and urged ongoing stakeholder consultations to ensure a smoother, more sustainable transition.
Credit: myjoyonline.com
