The Chamber of Oil Marketing Companies (COMAC) in Ghana is advocating for the immediate suspension of Section 136 of the Customs Act, 2026 (Act 1179). This section alters the petroleum tax arrangement by shifting the responsibility for downstream petroleum tax payments from Oil and LPG Marketing Companies to Bulk Import, Distribution and Export Companies (BIDECs). According to COMAC, this change could lead to increased fuel prices, disrupt supply, and put government revenue at risk.
COMAC's concerns are rooted in the potential consequences of the new tax arrangement. The Chamber believes that concentrating the tax obligation at the bulk-supply level could create a single point of failure. If a BIDEC defaults, it could affect several marketers and retail outlets. Furthermore, COMAC is worried that BIDECs may require longer payment periods and incur additional financing and guarantee costs, which could ultimately be passed on to consumers.
Dr. Riverson Oppong, CEO and Industry Coordinator of COMAC, emphasizes that the core problem lies in the weak enforcement of existing controls, not the collection point of taxes. He suggests that the focus should be on strengthening enforcement rather than changing the point of tax collection. According to Dr. Oppong, until existing controls and system overrides are properly enforced, changing the collection point does not address the underlying challenge.
COMAC's analysis for the fiscal year 2025 identified approximately 819.25 million litres of unaccounted petroleum products, with an estimated revenue implication of around GH¢2.5 billion. The Chamber is calling for the existing framework to be retained while the government strengthens enforcement, addresses system overrides, and provides a full accounting of unaccounted petroleum products.
The Chamber has given the Ministry of Finance 14 days to announce the suspension of Section 136. If this is not done, COMAC will convene an emergency general meeting to determine its next administrative, regulatory, and legal steps. This ultimatum underscores the urgency with which COMAC views the potential impacts of the new tax arrangement on the fuel supply chain.
Dr. Oppong stresses the need for transparency and evidence before the existing framework is replaced. He believes that a thorough examination of the current system and its challenges is necessary to ensure that any changes made are beneficial and do not disrupt the market. This cautious approach reflects COMAC's commitment to finding solutions that will stabilize the fuel supply and protect consumer interests.
The call for the suspension of Section 136 reflects a broader debate about the management of Ghana's fuel sector. As the country navigates the complexities of fuel supply and taxation, stakeholders will be watching closely to see how the government responds to COMAC's concerns and what impact any changes will have on the market.
Key points
- COMAC calls for the suspension of Section 136 of the Customs Act, citing risks of increased fuel prices and disrupted supply.
- The new tax arrangement shifts the responsibility for downstream petroleum tax payments from Oil and LPG Marketing Companies to Bulk Import, Distribution and Export Companies (BIDECs).
- COMAC's FY2025 analysis identified about 819.25 million litres of unaccounted petroleum products, with an estimated revenue implication of approximately GH¢2.5 billion.
