Story By: Akua Oteng Amponsah
The Chamber of Oil Marketing Companies (COMAC) has raised concerns about the government’s recently approved GH¢1 fuel levy, warning that it could push many downstream petroleum businesses towards insolvency and derail clean energy targets.
“The cumulative impact of rising taxes, limited margins, and increasing financial obligations threatens the sustainability of many OMCs and LPGMCs within the sector,” said Dr. Riverson Oppong, CEO and Industry Coordinator of COMAC.
A significant number of Oil Marketing Companies (OMCs) and Liquefied Petroleum Gas Marketing Companies (LPGMCs) are already burdened by debt, and further fiscal pressure could lead to widespread insolvency, job losses, and broader economic disruption.
COMAC acknowledged the need to address the country’s energy sector debt, currently exceeding US$3.1 billion, but stressed that the burden of repayment should not come at the cost of business viability and consumer affordability.
“COMAC reaffirms its unwavering commitment to supporting the recovery of the national energy sector… However, this support should not come at the cost of the downstream petroleum industry’s survival, economic competitiveness, or consumer protection,” the statement read.
The Chamber warned that the levy could trigger a 5% drop in demand, especially among smaller players, and undermine the government’s Cylinder Recirculation Model (CRM), public health, and environmental sustainability goals.
“We urge 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,” the statement concluded.
In a related development, the African Institute of Energy Sustainability (AIES) has also condemned the levy, describing it as unjust, economically flawed, and socially unfair.
“Over 77% of imported fuel is used for transport, not power generation. This levy unfairly penalizes ordinary Ghanaians for problems they didn’t cause,” said Dr. Samiu Kwadwo Nuamah, Executive Director of AIES.
AIES is calling on the government to withdraw the levy and focus on sustainable reforms, including merging ECG and NEDCo, privatizing retail operations, and strengthening oversight through an independent power administrator.
“Ghana needs bold, evidence-based solutions—not more financial pressure on struggling citizens,” the AIES statement concluded.
