The Chamber of Oil Marketing Companies (COMAC) is calling on the government to extend the payment period for the newly introduced 1 cedi Energy Sector Recovery Levy from 30 days to 45 days to ease cash flow challenges facing industry players.
The implementation of the levy, which forms part of the Energy Sector Levy (Amendment) Bill 2025, was initially scheduled to take effect on Monday, June 9, but was postponed following resistance from oil marketers over operational concerns and the rising cost of petroleum products on the international market.
However, with recent declines in global fuel prices, COMAC is engaging the Ghana Revenue Authority (GRA) to facilitate a smooth rollout of the levy.
Speaking at a media briefing on Monday, June 30, Chief Executive Officer of COMAC, Dr. Riverson Oppong, commended the Ministry of Finance, the National Petroleum Authority (NPA), and the GRA for their constructive dialogue with the industry in recent weeks.
“Through this dialogue, we have seen substantial progress, particularly the postponement of the implementation date and concentrating the relief measures for OMCs.
On this basis, we are firm on commitment to supporting the implementation of the levy in short, and contributing to Ghana’s energy sector recovery,” Dr. Oppong stated.
However, he stressed that the sustainability of OMC operations depends on the full implementation of agreed relief measures.
“However, the sustainability of OMCs business heavily relies on implementation of the corresponding relief measures, which were proposed and neutrally acknowledged during those engagements with the Ministry of Energy and Green transition,” Dr. Oppong stated.
To that end, COMAC is proposing key adjustments to the rollout of the levy.
These include extending the levy payment period from 30 to 45 days, transitioning eligible oil marketing companies from a cash-and-carry model to a credit-based tax payment structure supported by insurance bonds or bank guarantees, and the phased removal of all petroleum subsidies to eliminate market distortions.
He added, “So, in view of the above, we respectively call for the following actions to be operationalised without delay. Extension of the levy payments period from 30 days to 40 days to ease cash flow constraints from our members. Transition of eligible OMCs from cash and carry model to credit-based tax payment structures supported by insurance bonds or bank agreement. And also, phase removal of all petroleum subsidies to eliminate distortions and ensure market parity.”
“We firmly believe the limitation of the relief measures stated here are essential structure adjustments to ensure the levy implementation is both sustainable and equitable,” Dr. Oppong concluded.
Source: Ghana/Starrfm.com.gh/Hamdia Mohammed
