The Chamber of Oil Marketing Companies (COMAC) in Ghana has called for the indefinite suspension of Section 136 of the Customs Act, 2026, Act 1179. According to COMAC, this provision could disrupt fuel supply and pose significant risks to the downstream petroleum industry and the wider economy. The section in question seeks to transfer responsibility for accounting for downstream petroleum taxes from Oil Marketing Companies (OMCs) and LPG Marketing Companies (LPGMCs) to Bulk Import, Distribution and Export Companies (BIDECs).
COMAC argues that the justification for the change - that it would be easier for the Ghana Revenue Authority (GRA) to deal with fewer Bulk Distribution Companies than numerous OMCs - is not convincing. There are currently about 56 BDCs, with no statutory limit on their numbers, and OMCs could also obtain BDC licences. This, COMAC claims, does not address the real issues and could lead to more problems.
The Chamber notes that BIDECs have indicated they would require a minimum of 45 days to settle their tax obligations, compared with the current 21-day arrangement for OMCs and LPGMCs. COMAC argues that this could delay revenue collection rather than accelerate it, as OMCs currently pay 21 days after lifting, while BDCs would take 45 days. This, they claim, does not provide the government with faster revenue.
Chief Executive of COMAC, Dr. Riverson Oppong, has warned that concentrating tax obligations at the BIDEC level could create a wider fuel supply risk. A single BIDEC may supply several OMCs, LPGMCs, and hundreds of retail outlets, handling significantly larger volumes than individual OMCs. This increases the potential impact of any disruption, with a BDC dealing with 50 million litres compared to an OMC's five million litres.
COMAC believes that Section 136 shifts the existing challenges in tax collection from OMCs to BDCs instead of addressing weaknesses in the revenue collection system. The Integrated Customs Management System (ICUMS) already prevents an OMC from lifting additional products when it fails to settle its tax obligations within the prescribed period. The Chamber argues that the real problem lies in the ICUMS and not in the current system.
Dr. Oppong stated that COMAC supports Sections 126 and 127 of the new Customs Act but objects to Section 136, citing inadequate consultation with industry stakeholders before the legislation was enacted. He urged Parliament to consider amendments to provisions of the law that require clarification or correction, emphasizing that proper engagement with industry could have identified and addressed some of the concerns now emerging.
The Chamber says it supports measures to improve revenue collection and compliance but insists that Section 136 needs to be suspended indefinitely. COMAC's call for suspension is aimed at preventing potential disruptions to fuel supply and ensuring the stability of the downstream petroleum industry. The fate of Section 136 now rests with Parliament, which will need to consider the concerns raised by COMAC and other stakeholders.
Key points
- COMAC urges Parliament to suspend Section 136 of the Customs Act.
- The proposed changes could delay revenue collection.
- Section 136 poses significant risks to fuel supply and the economy.
