COMAC RESPONSE TO THE PROPOSED DEDICATED LEVY ON FUEL PURCHASES
The Chamber of Oil Marketing Companies (COMAC) acknowledges the government’s ongoing efforts to enhance public safety and emergency response services, particularly through the Ghana National Fire Service (GNFS). We recognize the critical role the GNFS plays in safeguarding lives and property and appreciate the need for improved resources and equipment to strengthen its operations.
The Chamber of Oil Marketing Companies (COMAC) acknowledges the government’s ongoing efforts to enhance public safety and emergency response services, particularly through the Ghana National Fire Service (GNFS). We recognize the critical role the GNFS plays in safeguarding lives and property and appreciate the need for improved resources and equipment to strengthen its operations.
In a media publication of a recent visit to the fire incident site at Adum PZ, the Minister for the Interior announced a proposal to introduce a 10-pesewa per litre levy on fuel to support the retooling and operational enhancement of the GNFS. In response to this announcement, COMAC strongly opposes the proposed fuel levy, as it is neither a sustainable nor a practical long-term solution.
The petroleum downstream sector in Ghana is already burdened with multiple levies and taxes, which significantly contribute to the high ex-pump price of fuel. The Chamber has engaged with the Government to seek reductions in and or eliminate some of existing levies to ease the financial strain on consumers and businesses.
Currently, the tax and levy components included in the ex-pump price of petroleum products comprise of:
• Energy Debt Recovery Levy
• Road Fund Levy
• Energy Fund Levy
• Price Stabilization and Recovery Levy
• Sanitation and Pollution Levy
• Energy Sector Recovery Levy
• Special Petroleum Tax
• Primary Distribution Margin
• BOST Margin
• Fuel Marking Margin
• Unified Petroleum Price Fund (UPPF)
• LPG Filling Plant Administration Cost
These levies and regulatory margins collectively account for approximately 25% of the ex-pump price, adding a significant cost burden to Ghanaian consumers.
While we acknowledge the need to improve the operational efficiency of the GNFS, we strongly advocate for a proactive approach rather than reactive taxation to address fire safety concerns.
The Chamber of Oil Marketing Companies firmly opposes the introduction of any additional fuel levy and calls on the government to explore alternative financing strategies that do not impose further economic hardship.
We remain committed to engaging constructively in policies that promote national development while safeguarding economic stability.
Signed
Dr. Riverson Oppong
CEO/Industry Coordinator
March 27, 2025