COMAC renews call for full deregulation of fuel prices

The Chamber of Oil Marketing Companies (COMAC) has urged for the full deregulation of fuel prices, stating that continued government intervention is impacting private businesses in the downstream petroleum sector. As the government continues to subsidize diesel amidst rising global oil prices, COMAC's CEO, Dr. Riverson Oppong, argues that the industry cannot be considered fully deregulated when the government still influences certain aspects of fuel pricing.

Dr. Oppong highlighted the industry's long-standing push for a full price deregulation policy and questioned why the government should determine the prices private businesses charge, especially when they operate in a free market economy and rely on borrowed funds to finance their operations. He explained that while some components of the pricing formula have been deregulated, government interventions persist, which is why subsidies are necessary.

Dr. Oppong emphasized that government interference remains a significant challenge for oil marketing companies, and that the entry of new players into an already crowded market is another issue that needs addressing. He questioned the motivation behind new applicants for an oil marketing company license, suggesting that they either lack understanding of the business or have ulterior motives.

Dr. Oppong concluded that a fully deregulated market would enable private sector operators to determine prices without excessive government intervention.