COMAC wants fuel taxes frozen to ease pressure on consumers

The Chamber of Oil Marketing Companies (COMAC) is urging the government to freeze fuel taxes and levies as it continues to subsidize diesel amidst rising global oil prices. Dr. Riverson Oppong, COMAC's CEO, argues that reducing the tax burden on consumers could be a more sustainable solution to mitigate the impact of rising fuel prices.

The government's Uniform Pricing Policy Fund ensures uniform fuel prices across various regions, but COMAC insists this does not equate to a loss of government revenue. Instead, it is the taxes and levies imposed on petroleum products that cause significant strain on government finances, he claims. Dr. Oppong reiterates his plea for a temporary freeze on some fuel taxes to alleviate the pressure on consumers and businesses.

He acknowledges government's efforts to cushion consumers but maintains that more could be done through the tax regime. The sustainability of the downstream petroleum industry is a primary concern for Dr. Oppong. He suggests using additional revenue from crude oil production to support this sector, emphasizing that Ghana, being an oil-producing nation, has this capability.

He proposes redirecting unexpected gains from higher crude oil revenues to the downstream sector, arguing that this could help bridge the gap between the upstream and downstream petroleum sectors currently experiencing contrasting fortunes.