The Chamber of Oil Marketing Companies (COMAC) has issued a strong warning against the government’s proposed GHS 1 per litre fuel levy, describing it as a significant threat to the sustainability of the downstream petroleum sector.
In a press release dated June 4, COMAC’s CEO and Industry Coordinator, Dr. Riverson Oppong, stated that the cumulative impact of rising taxes, limited margins, and increasing financial obligations is pushing many Oil Marketing Companies (OMCs) and Liquefied Petroleum Gas Marketing Companies (LPGMCs) toward insolvency.
“A significant number of OMCs/LPGMCs are already burdened by debt, and further fiscal pressure could lead to widespread insolvency, job losses, and broader economic disruption,” Dr. Oppong cautioned.
The Chamber expressed concern that the levy, if implemented, would undermine the industry’s capacity to remain competitive and serve consumers efficiently. COMAC emphasized that while the industry remains committed to the national energy sector’s recovery through regular contributions under the Energy Sector Levies Act, this support “should not come at the cost of the downstream petroleum industry’s survival.”
COMAC also highlighted structural inefficiencies and mismanagement in the power and electricity sectors as contributing factors to the current energy sector challenges—urging that OMCs and LPGMCs should not be penalized for issues outside their control.
With global Brent crude prices already volatile, the Chamber warned that any further price hikes could intensify cost pressures and force marketers to pass these on to consumers, potentially leading to a 5% decline in fuel demand, particularly affecting smaller players.
“We urge government to collaborate with industry stakeholders to ensure that fiscal policy decisions reflect operational realities – protecting business survival, promoting energy equity, and advancing Ghana’s development agenda,” the statement concluded.
