COMAC CEO Demands Transparency on Dumsor Levy Proceeds Amid Planned Fuel Price Relief
The Chief Executive Officer of the Chamber of Oil Marketing Companies (COMAC), Dr Riverson Oppong, has called for full disclosure of proceeds accrued from the controversial energy sector levy—commonly referred to as the “dumsor levy”—as government moves to ease fuel prices.
His call comes on the back of a government decision to remove selected taxes and margins on petroleum products to cushion consumers, amid sustained global price pressures.
The decision, announced by Minister of State in charge of Government Communications, Felix Kwakye Ofosu, followed a Cabinet meeting held on Thursday to evaluate prevailing global economic conditions, including heightened fuel price volatility driven by geopolitical tensions in the Middle East involving the United States, Iran and Israel.
Speaking on PM Express Business Edition monitored by NorvanReports, Dr Oppong described the policy move as both anticipated and unexpected, citing concerns over its timing.
“I don’t know what to call it, whether expected or surprise…I say ‘expected’ because I believe we needed this kind of intervention. Surprised, because I don’t know why government would take a decision like this when the war, indeed, today, has been halted,” he stated.
According to him, the decision comes at a time when international benchmark prices are beginning to show signs of stabilisation, raising questions about why earlier calls for intervention were not acted upon.
“But as I’m saying, we already see the international benchmark prices coming out, and this is the time that the government decided to review prices when we had been asking for it a month ago,” he added.
Despite these concerns, Dr Oppong welcomed the policy direction, noting that it signals responsiveness on the part of government.
“It’s a good direction. I think we are all excited about it as an industry…we are having a dialogue with the government that listens and understands the impact of decisions like this to the ordinary Ghanaian,” he said.
He, however, cautioned that any reduction in pump prices may not be immediate, explaining that global price movements typically take time to transmit into domestic pricing.
“The expectation of this downward movement of fuel globally will take some time…when it was going up it took some time,” he explained.
Dr Oppong further indicated that clarity is required on the specific taxes and margins that will be reviewed under the new policy.
“Hopefully, if the energy minister and international minister meet, they will understand which taxes and which margins that they are going to take a second look at,” he noted.
Central to his concerns, however, is the fate of the energy sector levy, which he believes could be temporarily suspended to provide immediate relief.
“I foresee it affecting the dumsor levy and that levy probably being suspended for four weeks to bring some leverage,” he stated.
He stressed that any such suspension must be accompanied by transparency and accountability regarding the utilisation of proceeds collected so far.
“As a CEO of Oil marketing companies, I believe it should not just end there by the suspension. We need some level of accountability,” he asserted.
Dr Oppong is therefore urging the Ministry of Finance to disclose total accruals from the levy since its introduction.
“I will personally be glad to hear from the Minister of Finance how much that almost GH¢2 have accrued so far…So let’s see what has been gathered so far and what it has been used for,” he said.
He argued that such disclosure would help justify the continued imposition of the levy on consumers, even after any temporary suspension.
“And that gives the ordinary Ghanaian the justification for why we should pay the extra GH¢1 even after the four weeks of suspension,” he added.
While uncertainty remains over which margins may be adjusted, Dr Oppong maintained that the levy component is the most likely to be targeted under the current review.
“But for the levy side, I believe that it might be a special petroleum tax, or the extra one cedi that you call the dumsor levy suspended,” he concluded.
