The Chamber of Oil Marketing Companies (COMAC) has renewed calls on the government to temporarily suspend the additional GH¢1 Energy Sector Levy on petroleum products, arguing that the measure would provide much-needed relief to consumers as fuel prices continue to rise.
The appeal comes amid successive increases in pump prices by Oil Marketing Companies (OMCs), with diesel prices nearing GH¢20 per litre due to rising international refined petroleum prices, a weakening cedi and higher import costs.
Chief Executive Officer of COMAC, Dr. Riverson Oppong, said the additional levy, introduced when fuel prices had declined significantly, should now be withdrawn because prevailing market conditions have changed.
According to him, suspending the levy would help cushion households and businesses struggling with rising transportation and energy costs.
“We have said it many times, but it never happened. This is probably the time for the energy sector levy to be removed so consumers can benefit,” Dr. Oppong said.
He argued that the original justification for introducing the levy no longer applies, as fuel prices have climbed back to levels seen before the tax was implemented.
“The same reason you brought it because fuel prices had moved from GH¢17 to GH¢10, then you added one cedi. Now we are almost back there again. So take it off and get the praise that you deserve,” he stated.
Dr. Oppong noted that taxes and levies now make up a significant portion of the retail price of petroleum products, adding that suspending the GH¢1 levy would ease the burden on consumers without significantly undermining government revenue.
The Chamber has also cautioned motorists to prepare for another increase in fuel prices during the next petroleum pricing window.
Although COMAC has not released official projections, Dr. Oppong said preliminary market data indicates that petroleum products could record significant price increases.
“It’s too early to give any figure in terms of percentage increase, but for sure we are going to see an increase. Even as it stands, we have seen almost a 10% increase across products,” he noted.
He explained that the two major factors influencing fuel prices, international petroleum prices and the cedi-to-dollar exchange rate, are both moving in unfavorable directions.
“The two most important factors increasing fuel prices are all activated and that would be a very big blow to the ordinary Ghanaian,” he warned.
COMAC Calls for Forex Support for Petroleum Importers
Beyond suspending the GH¢1 Energy Sector Levy, COMAC is urging the government to improve access to foreign exchange for petroleum importers.
Dr. Oppong said making more U.S. dollars available for fuel imports would reduce pressure on the cedi, lower import costs and help stabilize fuel prices.
As a net importer of refined petroleum products, Ghana remains highly vulnerable to fluctuations in global oil prices and exchange rates. A weaker cedi increases the local currency cost of importing fuel, even when international prices remain stable.
“I would advise that the government make dollars available for the importation of crude oil and petroleum products so that we don’t feel the heat from the growing demand for foreign exchange,” he said.
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