The Chamber of Oil Marketing Companies (COMAC) has called for the immediate suspension of Section 136 of the Customs Act, 2026 (Act 1179), warning that the new petroleum tax arrangement could increase fuel prices and threaten supply security.
In a statement on Thursday, October 1, COMAC said the provision shifts the responsibility for accounting for downstream petroleum taxes from Oil and LPG Marketing Companies (OMCs/LPGMCs) to Bulk Import, Distribution and Export Companies (BIDECs).
“COMAC believes Section 136 seeks to change the tax collection point rather than address the core issue, which in its view is the effective enforcement of existing controls,” the Chamber said.
COMAC warned that BIDECs could incur additional financing and guarantee costs, which may ultimately be passed on to consumers. It also raised concerns that disruptions involving a single BIDEC could affect multiple marketers and retail outlets.
The Chamber said the provision was introduced without adequate consultation, an impact assessment or a clear transitional plan.
COMAC is demanding the immediate and indefinite suspension of Section 136 and wants the existing tax collection framework maintained.
The Chamber has given the Ministry of Finance 14 days to suspend the provision, failing which it will convene an emergency meeting to determine its next steps through administrative, regulatory and legal channels.
Section 136 changes the point at which downstream petroleum taxes are accounted for.
COMAC maintains that the key problem is enforcement of existing controls rather than the current tax collection model.
