COMAC says Uniform Fuel Pricing Fund should not be confused with fuel subsidy

The Chamber of Oil Marketing Companies (COMAC) has clarified that the Uniform Pricing Policy Fund should not be confused with government fuel subsidies. As the government continues to provide relief against rising diesel prices, Dr Riverson Oppong, COMAC's CEO, explained the purpose of the fund. The Uniform Pricing Policy Fund ensures uniform fuel prices across the country, preventing consumers in remote areas from paying significantly higher prices compared to those closer to fuel ports.

Unlike some countries where fuel is cheaper at ports than in the interior, COMAC states that in Ghana, fuel prices remain the same regardless of the location. Dr Oppong emphasized that the fund is not a direct charge on government revenue. Instead, subsidies lead to higher taxes and levies, which impact government budgets. He suggested that taxes and levies could be a more sustainable way to support consumers facing rising fuel prices.

Dr Oppong also welcomed government intervention, appreciating the support for the industry. The CEO further called for discussions on utilizing increased revenue from Ghana's upstream petroleum sector to support the downstream sector. He proposed sharing additional revenue generated from upstream activities to alleviate pressures on the downstream sector, where businesses and consumers are struggling despite the upstream sector's success.