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COMAC opposes Customs Act tax shift, warns of higher pump prices

by theoverseeronline.com
September 25, 2026
in Energy
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COMAC opposes Customs Act tax shift, warns of higher pump prices
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The Chamber of Oil Marketing Companies (COMAC) has called for the indefinite suspension of Section 136 of the Customs Act, 2026 (Act 1179), warning that the provision could increase financing costs, put pressure on fuel prices and create risks for petroleum supply.

COMAC raised the concerns following a September 18, 2026 meeting convened by the Customs Division of the Ghana Revenue Authority (GRA) on the implementation of the new law.

The Chamber said it supports Sections 126 and 127, which preserve the customs-controlled framework for the registration of petroleum operators and the bonded storage, lifting and movement of petroleum products.

However, it objects to Section 136, which seeks to transfer downstream petroleum tax obligations from Oil and LPG Marketing Companies (OMCs/LPGMCs) to Bulk Import, Distribution and Export Companies (BIDECs).

COMAC said the change was introduced without adequate consultation and could have serious consequences for petroleum operators, the industry and the wider economy.

Under Section 136(3), a BIDEC would 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.

COMAC argues that the arrangement would force BIDECs to finance taxes before receiving payment from their customers.

The Chamber warned that this could lead to tighter credit arrangements and higher security requirements, with the additional costs potentially passed on to consumers through higher pump prices.

It also disputed the argument that moving the tax obligation to BIDECs would speed up revenue collection.

According to COMAC, BIDECs indicated at the September 18 meeting that they require a minimum of 45 days to settle payments, compared with the 21-day period under which OMCs/LPGMCs currently operate.

The Chamber further warned that concentrating tax obligations among BIDECs could create wider supply risks because individual BIDECs supply multiple OMCs/LPGMCs and hundreds of outlets.

COMAC said the current system allows the Integrated Customs Management System (ICUMS) to deactivate a defaulting OMC/LPGMC without necessarily disrupting the wider market.

However, it argued that deactivating a defaulting BIDEC could affect several marketers and fuel outlets at the same time.

The Chamber maintains that the central issue is not where taxes are collected but how existing controls are enforced.

It said the accumulation of arrears points to weaknesses in the enforcement of existing ICUMS controls, including system overrides that allowed affected operators to continue lifting products beyond approved limits.

“Override access must be restricted, properly authorised and fully traceable to the officers responsible for each decision,” COMAC said.

The Chamber also warned of what it described as “fiscal distortion and double collateralisation”.

It argued that the current system matches tax liability with the point at which operators have liquidity, with BIDECs paying at importation while OMCs/LPGMCs account for taxes and levies at the ex-pump stage.

COMAC said Section 136 would break that link and require BIDECs to pre-finance taxes before receiving payment from marketers.

According to the Chamber, this could force smaller BIDECs out of the market and increase concentration within the sector.

COMAC also criticised the consultation process surrounding Section 136.

It said the Chamber, which represents the most affected operators, was neither consulted nor invited to comment before the passage of the provision, despite its standing engagements with the GRA, National Petroleum Authority (NPA) and the Ministries of Finance and Energy.

“A post-passage implementation meeting does not cure this procedural defect,” the Chamber said.

COMAC further pointed to what it described as an internal inconsistency between Sections 126 and 136, arguing that the two provisions establish different triggers for tax payments on the same consignment.

It said no impact assessment, memorandum, transitional plan or financing arrangement had been provided for its consideration.

Beyond Section 136, COMAC raised three other matters it said remain unanswered by the GRA.

The first concerns 10 Bulk Road Vehicles (BRVs) carrying Automotive Gas Oil (AGO) that were impounded by the GRA on October 8, 2025.

COMAC said it has been awaiting information on their registration numbers, the owning BIDECs and designated marketers for 11 months.

The Chamber also cited 819,248,990 litres of unaccounted-for petroleum products identified in its FY2025 report, which it estimates represents about GH¢2.5 billion in lost revenue.

COMAC said the amount represents revenue leakage rather than recoverable debt and said no response had been received from the GRA after four months.

The third matter involves the granting of non-bonded status to three named operators.

COMAC said it had requested clarification over what it described as apparent departures from GRA’s published criteria, but the request remained pending.

The Chamber is demanding the indefinite suspension of Section 136 and the retention of the existing tax arrangement.

It is also seeking a written account of the circumstances that allowed affected operators to continue lifting petroleum products after exceeding applicable credit limits or payment periods.

COMAC wants an independent review of non-bonded status approvals and other material system overrides, including their approval processes, supporting justification and audit trails.

The Chamber said it remains willing to engage with the GRA and other stakeholders on improving compliance and revenue mobilisation.

However, it warned that it would pursue “every legitimate avenue – administrative, regulatory, legal and, as a last resort, industrial action” to keep Section 136 suspended.

COMAC said its preferred approach is to strengthen enforcement of the existing mechanism while protecting industry stability and national energy security.

Source: Barbara Yeboah
Tags: Barbara YeboahCOMACCustom Act TaxGhana NewsHigher pump prices
theoverseeronline.com

theoverseeronline.com

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