COMAC says Uniform Fuel Pricing Fund should not be confused with fuel subsidy

The Chamber of Oil Marketing Companies (COMAC) says the Uniform Pricing Policy Fund should not be confused with the fuel subsidy being provided by government.

This comes as government continues to cushion consumers against rising diesel prices amid increasing international oil prices.

Chief Executive Officer of COMAC, Dr Riverson Oppong, explained that the Uniform Pricing Policy Fund is designed to ensure that fuel prices remain the same across the country.

“The uniform pricing policy fund is to ensure that irrespective of where you buy fuel, whether Tamale, Kumasi, etc., the price is the same,” he said.

He explained that the arrangement prevents consumers in areas far from fuel ports from paying significantly higher prices.

“Unlike countries like Angola, Namibia, and East African countries, where fuel at the port is cheaper than going into the inner part of the country. Here, no matter where you pick the fuel, the fuel from any oil marketing companies, the price will be the same, and that’s what this particular fund does,” he said.

Dr Oppong stressed that the fund should not be treated as a direct charge on government revenue.

“And this can never be attributed to government revenue. It could be government intervention, no doubt. But the real subsidy, the real pain that will affect government budgets, is the taxes and levies,” he said.

He said the government could consider taxes and levies as a more sustainable way to cushion consumers from rising fuel prices.

“How many times have we been preaching about this one cedi to be frozen for some time? You are aware, but now it has been so,” he said.

Dr Oppong welcomed government’s intervention, saying the industry appreciates the support.

“We are happy for the government intervention, and I’ll still keep on saying that that’s government intervention. It’s good. We appreciate that,” he said.

He also called for discussions on how increased revenue from Ghana’s upstream petroleum sector could be used to support the downstream sector.

According to him, higher-than-projected crude oil revenue could provide an opportunity to cushion businesses and consumers facing pressure in the downstream sector.

“Can I bring this $20 million to cushion the downstream? Because the downstream is crying, upstream is laughing,” he said.

Dr Oppong said the government should engage stakeholders on how to share such additional revenue.

“So let’s have this dialogue. Instead of only one side being happy, can we share the extra profit, or the profit we are getting from upstream? That could be a good one. Probably that is what the government is doing now,” he said.

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DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.