COPEC calls for strategic fuel reserve to reduce dependence on tax cuts

The Chamber of Petroleum Consumers (COPEC) has called for the establishment of a strategic petroleum reserve to reduce Ghana's dependence on temporary tax cuts to address rising fuel prices. In an interview on Adom FM's Dwaso Nsem, COPEC Executive Secretary Duncan Amoah argued that continuously relying on tax reductions is an inadequate long-term solution to fuel price pressures.

He emphasized that Ghana should implement a structured system where a portion of petroleum products is reserved during periods of lower prices to stabilize the market when international prices surge. Amoah explained that creating a strategic reserve would enable the country to supply the market at more consistent prices during challenging times without constantly resorting to tax interventions.

According to him, such a system would provide the government with greater flexibility to manage price shocks instead of responding only when prices are on the verge of rising sharply. While acknowledging that short-term measures may offer temporary relief, Amoah stressed that building a comprehensive reserve would provide a more dependable buffer for the economy and consumers in the long run.

He stressed that Ghana needs a more strategic and forward-thinking approach to petroleum pricing, rather than primarily relying on tax adjustments.