The Chamber of Oil Marketing Companies (COMAC) has called for the indefinite suspension of Section 136 of the Customs Act, 2026 (Act 1179), arguing that the provision poses significant risks to fuel supply, revenue collection and the stability of Ghana’s downstream petroleum industry.
In a letter dated September 23, 2026, and addressed to the Commissioner-General of the Ghana Revenue Authority (GRA), Mr Anthony Kwesi Sarpong, COMAC said it welcomed Act 1179 and supported Sections 126 and 127, which preserve the customs-controlled framework.
However, the Chamber strongly objected to Section 136, which it said seeks to transfer the downstream petroleum tax obligation from Oil and LPG Marketing Companies (OMCs/LPGMCs) to Bulk Import, Distribution and Export Companies (BIDECs).
According to COMAC, the change was introduced without adequate consultation and could have serious consequences for industry operators and the national economy.
The Chamber is therefore calling for the indefinite suspension of Section 136 and the retention of the existing arrangement.
Threat to fuel supply
COMAC said Section 136(3) requires BIDECs to account for tax at the point of sale, while Section 136(5) allows the Commissioner-General to defer payment for up to 21 days through a bank guarantee.
The Chamber argued that this effectively shifts the tax liability, currently secured through guarantees, bonds and self-recognisance arrangements involving OMCs/LPGMCs, to the bulk-supply level.
At a meeting convened by the Customs Division of the GRA on September 18, 2026, the Chamber said the GRA justified the proposed arrangement on the basis that dealing with fewer entities would help address defaults by marketers.
COMAC, however, said that rationale was not supported by a memorandum or assessment.
The Chamber identified several concerns with the proposed arrangement.
On the argument that dealing with fewer entities would improve administration, COMAC said the number of BIDECs is not capped by law and could eventually approach the number of marketers. It also cited recent liquidations as evidence of instability within the sector.
On revenue collection, COMAC said BIDECs indicated at the meeting that they would require a minimum of 45 days to settle their obligations, compared with the 21-day period currently applicable to OMCs/LPGMCs, with many operators trading on a cash-and-carry basis.
The Chamber therefore argued that Section 136 could slow rather than accelerate revenue collection.
Concerns over enforcement
COMAC also raised concerns about the potential impact of enforcement.
It said the current Integrated Customs Management System (ICUMS) can automatically deactivate a defaulting OMC/LPGMC, allowing the GRA to target individual operators without necessarily disrupting the wider market.
However, the Chamber argued that deactivating a defaulting BIDEC could have broader consequences because one BIDEC may supply several OMCs/LPGMCs and hundreds of retail outlets.
It warned that the GRA could consequently face a difficult choice between enforcement, which could trigger a supply disruption, and continued forbearance, which could allow arrears to accumulate.
COMAC further argued that the underlying problem is enforcement rather than the point at which taxes are collected.
According to the Chamber, the accumulation of arrears reflects weaknesses in the enforcement of existing ICUMS controls, including alleged system overrides that allowed some affected operators to continue lifting petroleum products after exceeding approved limits.
It said transferring the tax obligation to BIDECs would merely relocate the risk rather than address its underlying cause.
Potential impact on pump price
The Chamber also raised concerns about possible fiscal distortions under Section 136.
COMAC said the current arrangement aligns tax liability with the respective cash flows of operators, with BIDECs paying at importation while OMCs/LPGMCs account for taxes at the ex-pump stage.
Under the proposed arrangement, the Chamber said BIDECs could be required to finance taxes before receiving payment from marketers.
It warned that this could result in tighter credit arrangements, higher security requirements and, ultimately, increased pump prices.
Consultation concerns
COMAC also criticised what it described as inadequate consultation before the passage of the legislation.
The Chamber said it was neither consulted nor invited to submit comments before the passage of the Act, despite its previous engagements with the GRA, National Petroleum Authority (NPA) and the Ministries of Finance and Energy and Green Transition.
It argued that a post-passage implementation meeting does not address the concerns surrounding the consultation process.
Three outstanding matters
COMAC also said the GRA had yet to provide substantive responses to three issues previously raised by the Chamber.
These include the impoundment of Bulk Road Vehicles (BRVs) carrying Automotive Gas Oil (AGO) by the GRA on October 8, 2025, for which the Chamber said it had been awaiting details for 11 months.
The Chamber also cited 819,248,990 litres of unaccounted-for stocks identified in its FY2025 report, which it estimates resulted in approximately GH¢2.5 billion in lost revenue.
COMAC described the matter as revenue leakage rather than recoverable debt and attributed it to weaknesses within the existing GRA and NPA framework.
The third issue concerns the alleged irregular granting of non-bonded status to three operators, which COMAC said appeared to depart from the GRA’s published criteria.
The Chamber therefore demanded the indefinite suspension of Section 136 in its entirety; the retention of the existing arrangement under which BIDECs pay at importation while OMCs/LPGMCs account for applicable taxes and levies at the ex-pump stage; a written account of the control circumstances that allegedly allowed operators to continue lifting petroleum products after exceeding their credit limits and an independent review of the granting of non-bonded status and other system overrides; as well as a substantive responses to its three earlier letters.
COMAC further cautioned that legislative assent does not necessarily conclude the implementation process, noting that commencement, subsidiary legislation and administrative arrangements remain relevant.
The Chamber said it would pursue what it described as legitimate administrative, regulatory and legal avenues to secure the suspension of Section 136 and, as a last resort, consider industrial action.
Source: Starrfm.com.gh
