The Chamber of Oil Marketing Companies (COMAC) has clarified its position on the government’s new Energy Sector Levy, stressing that its concerns are rooted in the rushed implementation, not the levy itself.
The GH¢1-per-litre tax on petroleum products was initially scheduled to take effect on June 9 but has since been postponed to June 16 after widespread pushback from industry stakeholders.
COMAC CEO Dr. Riverson Oppong explained that oil marketing companies were neither financially nor logistically prepared for such an abrupt rollout.
He warned that the short notice placed unnecessary pressure on operators in the downstream petroleum sector.
“Our concern isn’t about the levy’s purpose but the timeline, unlike global fuel price hikes, which are absorbed gradually by the market, tax-driven increases require large upfront payments that directly strain our cash flow,” Dr. Oppong said.
He noted that taxes on fuel must be prepaid or bonded, meaning oil marketing companies need to secure capital well in advance, often within days before lifting fuel from depots.
“To lift just 10 loads of a 58,000-litre BRV per day over a week under the new tax regime, we’d need to raise at least GH¢2 million immediately, which bank can provide that kind of liquidity on such short notice to pay the GRA? That’s the real challenge,” he explained.
Dr. Oppong emphasised that the Chamber supports government efforts to raise revenue for the energy sector, but cautioned that major policy changes must be rolled out with proper planning and consultation to avoid disrupting supply chains and operations.
COMAC has welcomed the government’s decision to delay implementation and is calling for deeper engagement with stakeholders to ensure a smoother transition and avoid unintended consequences for both businesses and consumers.