Fuel ‘relief’ not from gov’t – COMAC CEO says fuel cuts are industry burden

The CEO of COMAC, Dr Riverson Oppong, has challenged government’s narrative on recent fuel price reductions, insisting the so-called relief is not coming from state intervention but from pressure on industry players. Speaking on PM Express on Joy News on Wednesday, he argued that the reductions announced in pump prices are not backed by cuts in taxes or levies.

His comments come at a time when many Ghanaians are closely monitoring fuel prices due to their direct impact on transportation costs, inflation, and overall cost of living. The debate over fuel pricing has intensified in recent weeks as global oil market volatility continues to affect local economies.

The presidency has recently indicated that it is stepping in to stabilise petroleum prices in response to global shocks, particularly tensions in the Middle East affecting supply and pricing. Government officials have suggested that these interventions are aimed at cushioning consumers from sharp increases and ensuring price stability across the country.

But Dr Oppong says the reality on the ground tells a different story. He insists that the perceived intervention is being mischaracterised and that the burden of keeping prices down is falling heavily on industry stakeholders rather than the state.

“The relief of GH¢0.36 on petrol and GH¢2 on diesel is true, but let me also highlight the fact that this is a relief that stems from operational margins of activities of the industry, and it has not touched the government as it did not touch any tax or levies that go into the government coffers.”

He warned that the approach effectively shifts the burden onto key institutions and private operators. According to him, this creates hidden financial stress within the petroleum sector, which may not be immediately visible to the average consumer.

“But this also means that NPA and even BOST would have to cough up external money to support this. So for me, the question here is whether this is a relief or pressure on institutions?”

While acknowledging that consumers will welcome lower prices, he maintained that the cost is being absorbed elsewhere, raising concerns about sustainability if such measures continue without structural adjustments.

“I believe that the ordinary Ghanaian will be happy. We are also happy because we buy fuel. But I think the term that we are giving it needs to be considered where there is no touch on tax.”

Dr Oppong further explained the strain on oil marketing companies, particularly with discounted diesel. He noted that these companies are being forced into short-term financing arrangements that could affect their liquidity and long-term operations.

“Discounted diesel especially means that oil marketing companies will have to pre-finance the purchase and retailing of the product before government pays us after roughly one and a half months.”

He disclosed that the issue has already been raised with regulators, highlighting ongoing discussions between industry players and oversight bodies aimed at finding a workable solution.

“In today’s meeting with NPA, we made NPA aware that these are working capital of the industry, and therefore we want payment as fast as possible.”

He illustrated the financial implications using a typical scenario, showing how even moderate-scale operations could be significantly impacted by delayed reimbursements and operational constraints.

“Assuming that one person lifts 10 million litres a month, that means that the person is in debt of GH¢603,000, which is more than half a million cedis that could have purchased fuel for retailing.”

To ease the pressure, the industry is also seeking concessions from tax authorities, arguing that temporary relief measures could help stabilise operations and prevent disruptions in supply.

“On the other hand, we are also going to negotiate with GRA since no tax was touched, we want to plead with GRA to also delay tax payments from our members or the industry, that’s the LPG and oil marketing companies, and that also brings some buffer onto what we are doing.”

He did not hold back in his criticism of how the burden is distributed, suggesting that the downstream petroleum sector is repeatedly used as a buffer for government interventions without adequate support.

“Is just unfortunate. Let me put it very unapologetically here. It’s just unfortunate that the downstream business is always receiving the burden for the government; we are the ones always coming to solve problems for the government.”

His remarks have added to the ongoing national conversation about fuel pricing, transparency, and the role of government versus private sector players in managing economic shocks.