The Chamber of Oil Marketing Companies (COMAC) has expressed serious concerns regarding the government’s newly approved GH¢1 fuel levy. The Chamber warns that this levy could drive numerous downstream petroleum businesses towards insolvency and hinder the country’s clean energy objectives.
In a press release dated 4th June 2025, COMAC voiced its apprehension over the recent enactment of the Energy Sector Levies (Amendment) Bill, which increases the Energy Sector Shortfall and Debt Repayment Levy (ESSDRL) by GH¢1 per litre. This levy applies to petrol, diesel, LPG, naphtha, fuel oil, and marine gasoil, raising the total tax burden from 22% to 26% of the ex-pump price, according to the oil marketers.
“The cumulative effect of escalating taxes, narrow profit margins, and mounting financial obligations jeopardises the sustainability of many Oil Marketing Companies (OMCs) and Liquefied Petroleum Gas Marketing Companies (LPGMCs) within the sector,” stated Dr. Riverson Oppong, CEO and Industry Coordinator of COMAC, in the release. He further warned that a significant number of OMCs and LPGMCs are already grappling with debt, and additional fiscal pressures could result in widespread insolvency, job losses, and broader economic turmoil.
While COMAC acknowledged the necessity of addressing the country’s energy sector debt, which currently exceeds US$3.1 billion, it emphasised that the burden of repayment should not compromise business viability or consumer affordability. “COMAC reaffirms its steadfast commitment to supporting the recovery of the national energy sector, a responsibility that OMCs and LPGMCs continue to fulfil through consistent remittances under the existing Energy Sector Levies Act. However, this support should not come at the expense of the downstream petroleum industry’s survival, economic competitiveness, or consumer protection, especially given the structural inefficiencies, mismanagement, and shortfalls within the power and electricity sectors,” the statement read in part.
As of 1st June 2025, the statutory levies per litre for petrol have risen to GH¢4.27, up from GH¢3.27, with the ESSDRL component increasing from 95 pesewas to GH¢1.95. COMAC noted that this increase was implemented without sufficient consultation with stakeholders, despite the sector’s strategic significance, which contributes 6% to Ghana’s economy.
According to COMAC, most OMCs and LPGMCs are already functioning with minimal and diminishing margins in a deregulated and fiercely competitive market. “Any future rise in international Brent crude prices will exacerbate cost pressures. With limited flexibility, marketers will have no choice but to pass on these increased costs to consumers—potentially leading to a 5% decline in demand, particularly among smaller operators,” COMAC added.
The Chamber also condemned the inclusion of LPG under the revised ESSDRL, labelling it counterproductive to Ghana’s goal of achieving 50% LPG penetration by 2030.
COMAC warned that escalating LPG prices could compel low-income households to revert to biomass fuels, undermining the government’s Cylinder Recirculation Model (CRM) and compromising public health and environmental sustainability objectives.
In light of these challenges, COMAC is calling for immediate discussions with the Ministry of Energy and Green Transition, along with other relevant agencies, to explore more balanced, evidence-based policy solutions. “We urge 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,” the statement concluded.
Industry representatives caution that without responsive policymaking, the progress made in price stability and energy reforms could be jeopardised by the implementation of this levy.
