The Chamber of Oil Marketing Companies (COMAC) has raised red flags over the government’s recently approved GH¢1 fuel levy, cautioning that it could push many downstream petroleum businesses toward insolvency and derail clean energy targets in the country.
In a press release, COMAC expressed worry over the passage of the Energy Sector Levies (Amendment) Bill, which raises the Energy Sector Shortfall and Debt Repayment Levy (ESSDRL) by GH¢1 per litre.
COMAC warned that the cumulative impact of rising taxes, limited margins, and increasing financial obligations threatens the sustainability of many Oil Marketing Companies (OMCs) and Liquefied Petroleum Gas Marketing Companies (LPGMCs) within the sector. A significant number of OMCs/LPGMCs are already burdened by debt, and further fiscal pressure could lead to widespread insolvency, job losses, and broader economic disruption.
COMAC also criticized the inclusion of LPG under the revised ESSDRL, describing it as counterproductive to Ghana’s target of achieving 50% LPG penetration by 2030. The Chamber warned that rising LPG prices could force low-income households to revert to biomass fuels, undermining the government’s Cylinder Recirculation Model (CRM), public health, and environmental sustainability goals.
COMAC is demanding an immediate engagement with the Ministry of Energy and Green Transition and other relevant agencies to explore more balanced, evidence-based policy solutions. The Chamber urged the government to collaborate with industry stakeholders to ensure that fiscal policy decisions reflect operational realities, protecting business survival, promoting energy equity, and advancing Ghana’s development agenda.
Industry players are warning that without responsive policymaking, gains made in price stability and energy reforms may be at risk as a result of this levy. The increase in fuel prices could lead to a drop in demand, especially among smaller players, and undermine the government’s efforts to promote clean energy and reduce poverty.
Source: Apexnewsgh.com/Ngamegbulam Chidozie Stephen
