The Chamber of Oil Marketing Companies (COMAC) has clarified the basis of its protest against the immediate rollout of the government’s new GHS1 per litre Energy Sector Levy on fuel.
This comes after the Chamber opposed the levy’s initial implementation date of June 9, citing operational and financial concerns. In response, the government has rescheduled the rollout to June 16.
Speaking on Channel One Newsroom on Monday, June 9, the Chamber’s Chief Executive Officer, Dr. Riverson Oppong, explained that the objection was not to the levy itself, but to the abrupt timeline and lack of liquidity and logistical preparedness.
According to him, fuel price increases driven by global commodity markets differ fundamentally from tax-driven hikes due to the upfront financial demands they place on oil marketing companies.
He posits that the sector is not operationally ready.
“When fuel prices increase based on the World Commodity Price increase, it is totally and entirely different from when taxes are increased, because what the public does not know is that taxes are prepaid or bonded, and that means that the oil marketing company would need to raise capital ahead of lifting.
“What this mean is that, to lift 10 of a 58,000 litres capacity of a BRV a day for a week, you would have to generate not less than GHC2 million yesterday. Which bank will give us that GHC2 million to pay GRA today? Those were the challenges we were talking about. It is not just straightforward,” he said.
Pushback against govt’s GHS1 fuel levy hike shows need for consultation – Minority