Chief Executive Officer of the Chamber of Oil Marketing Companies, Riverson Oppong, is raising concerns over the proposed adjustments to taxes and margins within the petroleum sector.
Speaking on the issue on the KeyPoints with Alfred Ocansey, Mr. Oppong said while government appears to be taking steps to address fuel price pressures, the approach raises serious questions about feasibility, consultation, and transparency.
According to him, any attempt to adjust industry margins cannot be done hastily without engaging key stakeholders.
“To touch margins needs consultation. I don’t think that can be done in three days. It’s somebody’s money.”
His comment comes after Cabinet tasked the Finance and Energy ministers, Drs Cassiel Ato Forson and John Jinapor to remove taxes and margins on the price of fuel.
Mr Oppong explained that margins directly affect oil marketing companies and other players in the downstream sector, thus due process is critical before any changes are implemented.
Mr. Oppong suggested that government could instead consider temporary tax relief measures as a short-term solution to cushion consumers.
“If you take that one cedi off for just four weeks, we will not die. The industry will not collapse.”
He argued that such a move would provide immediate relief without disrupting the financial structure of industry players.
The COMAC CEO also called on government to be more transparent about how revenue from fuel-related levies is being used.
“We were promised that on a quarterly basis, we will be told what the money is used for. As an industry, we are asking government to come and tell us.”
He indicated that while there are claims that the funds are used to support Independent Power Producers (IPPs) and gas payments, the public deserves detailed disclosure.
“We hear it is used to pay for IPPs and gas. But how much has been accrued, and how much has been used?”
Mr. Oppong also touched on the ongoing debate about the relevance of the Bulk Oil Storage and Transportation Company (BOST), describing its current position as uncertain.
“BOST is in a limbo. There’s a school of thought that says we don’t need it, and another that says we do. Both are right.”
He stressed that the focus should not be on whether BOST should exist, but rather on how it can be made more effective and relevant within the sector.
“It’s about how you make it important.”
Mr. Oppong concluded by urging government to adopt a more consultative and transparent approach in implementing petroleum sector reforms, especially given the sensitivity of fuel pricing to the broader economy.
By Christabel Success Treve
