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.
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.
But Dr Oppong says the reality on the ground tells a different story.
“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. “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.
“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.
“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. “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.
“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.
“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.
“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.”
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Source: www.myjoyonline.com