GH¢1 fuel levy will collapse our businesses – Oil marketers decry

The Chamber of Oil Marketing Companies (COMAC) is concerned about a new fuel levy. The government recently approved a GH¢1 increase in the Energy Sector Shortfall and Debt Repayment Levy (ESSDRL). This change could threaten many downstream petroleum businesses with insolvency. It may also hinder clean energy goals in Ghana.

In a press release on June 4, 2025, COMAC expressed its worries. The ESSDRL now applies to petrol, diesel, LPG, naphtha, fuel oil, and marine gasoil. This raises the total tax burden from 22% to 26% of the ex-pump price.

Dr. Riverson Oppong, CEO of COMAC, highlighted rising taxes and limited margins. He warned that these factors threaten the sustainability of many companies in the sector. Many Oil Marketing Companies (OMCs) and Liquefied Petroleum Gas Marketing Companies (LPGMCs) are already in debt. Further financial pressure could lead to job losses and economic disruption.

COMAC recognizes the need to address Ghana’s energy sector debt exceeding US$3.1 billion. However, they argue that repayment should not harm business viability or consumer affordability. They reaffirm their commitment to supporting the national energy sector's recovery.

Effective June 1, 2025, petrol levies increased from GH¢3.27 to GH¢4.27 per litre. The ESSDRL component rose from 95 pesewas to GH¢1.95 per litre without adequate consultation with stakeholders.

Most OMCs and LPGMCs operate on thin margins in a competitive market. Any rise in international Brent crude prices will add cost pressures for marketers. They may have no choice but to pass these costs onto consumers.

COMAC criticized including LPG under the revised ESSDRL as counterproductive to Ghana’s goals for LPG penetration by 2030. Rising LPG prices could push low-income households back to biomass fuels, undermining public health and environmental goals.

COMAC demands immediate discussions with the Ministry of Energy and Green Transition for balanced policy solutions. They urge collaboration with industry stakeholders for fiscal policies that protect businesses and promote energy equity.

Industry players warn that without responsive policymaking, recent gains in price stability may be at risk due to this levy.