The Chief Executive Officer of the Chamber of Oil Marketing Companies, Dr. Riverson Oppong, has pushed back against claims that recent reductions in fuel prices are the result of government intervention, arguing instead that the relief is being borne by industry players.
Speaking on PM Express on Joy News, he stated that while pump prices have declined, the reductions are not linked to any cuts in taxes or levies.
According to him, the reported relief of GH¢0.36 on petrol and GH¢2 on diesel is real, but it originates from operational adjustments within the downstream sector rather than any fiscal measures by government.
Dr. Oppong explained that government revenues remain unaffected since no taxes or levies have been reduced, raising concerns about how the burden is being distributed.
He warned that the current approach places financial pressure on key institutions such as the National Petroleum Authority and the Bulk Oil Storage and Transportation Company, as well as private operators within the industry.
While acknowledging that consumers benefit from lower fuel prices, he maintained that the cost of the relief is being absorbed elsewhere within the value chain.
Dr. Oppong further highlighted the strain on oil marketing companies, noting that discounted diesel forces them to pre finance fuel purchases and retail operations, with reimbursement from government taking up to one and a half months.
He revealed that the issue has already been raised with the regulator, emphasizing the need for faster payments to ease working capital constraints.
Using a practical example, he explained that a company lifting 10 million litres of fuel monthly could face a financing gap of about GH¢603,000, funds that could otherwise be used to sustain operations.
To mitigate the impact, he said the industry is engaging the Ghana Revenue Authority to explore the possibility of deferring tax payments for oil marketing companies and LPG operators.
Dr. Oppong criticised the current structure, stating that the downstream sector often ends up carrying the burden of government interventions.
He described the situation as unfair, stressing that industry players are frequently left to absorb costs in efforts to stabilise the market.