Dr Riverson Oppong, COMAC CEO
The Chief Executive Officer of the Chamber of Oil Marketing Companies (COMAC), Dr Riverson Oppong, has made a strong case for a more flexible approach to fuel taxation in Ghana, urging the government to consider reducing the controversial GHC 1 “Dumsor Levy” if global oil prices surge.
Speaking on TV3 ahead of the 2025 Mid-Year Budget Review, Dr. Oppong criticized earlier claims by government officials that the introduction of the GHC 1 levy would not affect pump prices. “We warned them,” he said. “Government cannot control international benchmark prices, so it was misleading to say the levy wouldn’t cause increases. The moment the levy was implemented, prices moved from GHC 10–11 to GHC 12–13, depending on the location.”
According to him, the chamber stood its ground in resisting the government’s attempt to downplay the impact, and their advocacy helped stall further levies, especially in the wake of global events like the Iran conflict which already contributed to rising prices.
Dr. Oppong emphasized the need for adaptability in fuel pricing policy, especially when external shocks drive up oil prices. “Nobody prays for geopolitical disruptions, but if international oil prices spike tomorrow, the government must consider rolling back the GHS 1 levy to cushion consumers,” he said. “It shouldn’t be a fixed charge in all conditions.”
He also touched on broader energy costs, referencing the recent increase in electricity tariffs. “We expected a reduction due to over-recovery from the Electricity Company of Ghana (ECG), thanks to the cedi’s appreciation. But tariffs still went up. So, from this budget review, Ghanaians deserve to know how much government has accrued from this levy, and how they plan to spend it—transparently.”
Addressing concerns from the public over fuel prices rising by more than GHC 1 despite the levy being a fixed addition, Dr. Oppong explained that other factors played a role. He cited the cost of borrowing and working capital as major constraints. “Most OMCs operate on a cash-and-carry basis. To meet tax obligations, they often borrow from banks at high interest. That cost is inevitably passed on to consumers—not because of greed, but because it’s simply unsustainable otherwise,” he explained.
He defended OMCs against accusations of profiteering, clarifying that their margins remain modest and largely unchanged. “We’re not increasing our profits; we’re managing unavoidable operational expenses.”
In conclusion, Dr. Oppong urged the government to adopt a more responsive and transparent fiscal policy regarding energy pricing. “Taxes like the GHC 1 levy should not be rigid. If global oil prices rise, levies must go down. That’s how you protect the Ghanaian consumer.”
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