COMAC wants fuel taxes frozen to ease pressure on consumers

The Chamber of Oil Marketing Companies (COMAC) has urged the government to freeze fuel taxes and levies to alleviate the burden on consumers amidst escalating global oil prices. COMAC's CEO, Dr. Riverson Oppong, argued that reducing the tax burden would be a more sustainable approach to cushioning consumers from rising fuel costs.

He clarified that the Uniform Pricing Policy Fund, instituted by the government, is not a direct loss of government revenue but a mechanism to maintain uniform fuel prices across the country, regardless of the purchase location. The chief concern, according to Dr. Oppong, lies with the taxes and levies imposed on petroleum products, which he believes pose a greater threat to government finances than the taxes themselves.

He reiterated his plea for a temporary freeze on certain fuel taxes to provide relief to consumers and businesses. While appreciating the government's efforts to cushion consumers, Dr. Oppong emphasized the need for more comprehensive action through the tax regime. He expressed concern for the sustainability of the downstream petroleum industry and proposed that unexpected gains from higher crude oil revenues could be redirected to support the downstream sector.

He suggested that the government could utilize these additional funds to bridge the gap between the upstream and downstream petroleum sectors, thereby fostering a more balanced industry.