COMAC calls for fuel tax freeze as oil prices rise

The Chamber of Oil Marketing Companies (COMAC) has called on the government to temporarily freeze some taxes and levies on petroleum products as rising global oil prices continue to put pressure on fuel prices. Chief Executive Officer of COMAC, Dr Riverson Oppong, said reducing the tax burden on petroleum products would offer a more sustainable way of cushioning consumers and businesses from rising fuel costs. He argued that the government’s intervention through the Uniform Pricing Policy Fund should not be treated as a direct loss of government revenue. According to him, the fund is designed to ensure that consumers pay the same price for fuel regardless of where they buy it in the country. 9 Fuel Price Hikes in 7 Months: See how much Ghanaians are now paying “The Uniform Pricing Policy Fund is to ensure that irrespective of where you buy fuel, whether Tamale, Kumasi, etc., the price is the same,” he said. Dr Oppong stated that the bigger pressure on government finances and consumers comes from the taxes and levies imposed on petroleum products. “This can never be attributed to government revenue. It could be government intervention, no doubt. But the real subsidy, the real pain that will affect government budgets, is the taxes and levies,” he said. He called on the government to temporarily freeze some fuel-related taxes to reduce the impact of rising prices on consumers and businesses. While welcoming the government’s efforts to cushion consumers, he noted that the tax regime provides another avenue through which the government could offer relief to the downstream petroleum sector. Dr Oppong also urged the government to consider using additional revenue generated from higher crude oil prices to support the downstream petroleum industry. He questioned why the government could not allocate part of an unexpected increase in crude oil revenue to support the downstream sector. “Wasn’t it a good idea for the government to sit down with stakeholders and say, ‘Hey guys, I was meant to make $100 million; now I’m making $120 million. Can I bring this $20 million to cushion the downstream?’” he asked. Fuel prices set to remain unchanged at pumps for two weeks He said his position was aimed at protecting the sustainability of the downstream petroleum industry, warning that measures that put excessive pressure on operators could eventually affect the entire sector. DR/MA Foundries, Machines and Jet Engines: Ghana’s untapped engineering potential Source: www.ghanaweb.com
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