The Chamber of Oil Marketing Companies (COMAC) has voiced concerns over the recently approved GH¢1 fuel levy.
It warned that the new levy could push many downstream petroleum businesses toward insolvency and derail clean energy targets in the country.
He added that although the support efforts by the government to pay off debt in the energy sector should not come at a cost to the downstream petroleum sector.
A statement issued by the Chamber indicated that “the cumulative impact of rising taxes, limited margins, and increasing financial obligations threatens the sustainability of many OMCs and LPGMCs within the sector”.
The statement which was signed by Dr Riverson Oppong, CEO and Industry Coordinator of COMAC, lamented that 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.”
“COMAC reaffirms its unwavering commitment to supporting the recovery of the national energy sector, a responsibility OMCs and LPGMCs continue to uphold through consistent remittance under the existing Energy Sector Levies Act. However, this support should not come at the cost of the downstream petroleum industry’s survival, economic competitiveness, or consumer protection, especially considering structural inefficiencies, mismanagement, and shortfalls within the power and electricity sectors,” the statement read in parts.
The statutory levies per litre for petrol have increased from GH¢ 3.27 to GH¢ 4.27.
The ESSDRL component has shifted from 95 pesewas to GH¢ 1.95.
COMAC lamented that the new increase was implemented without any stakeholder consultation.
The Chamber warned that “Any future rise in international Brent crude prices will compound cost pressures. With limited flexibility, marketers would be forced to pass on higher costs to consumers—potentially triggering up to a 5% drop in demand, especially among smaller players’’.
Meanwhile, the Chamber has stated that rising LPG prices may force low-income households to switch to biomass fuels, undermining the government’s Cylinder Recirculation Model (CRM), public health, and environmental sustainability objectives.
“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.”
By: Rainbowradioonline,com/Ghana