The Chamber of Oil Marketing Companies (COMAC) has renewed its plea for a fully deregulated fuel pricing regime, arguing that ongoing government intervention is hampering the operations of private oil marketers. COMAC’s chief executive officer, Dr Riverson Oppong, said the industry cannot be considered fully deregulated while the state continues to influence key components of the fuel pricing formula.
Oppong highlighted that, despite some elements of the pricing structure being loosened, government subsidies—particularly for diesel—remain in place. “This is an industry where we have pushed for a full price deregulation policy,” he said, questioning why the state should dictate the rates that private firms charge in a free‑market economy.
He added that companies rely on borrowed capital to run their businesses and that price ceilings or caps imposed by the government undermine their ability to set competitive rates. “If I’m a private business, I borrow money to run the business. Who is going to determine what I charge for my good, a ceiling, a cap and all those things because we are a free market economy?” Oppong asked.
While some margins within the Standard Reference Fuel Price (SREF) formula have been deregulated, Oppong said the remaining government interventions continue to be a major challenge. “I’m also tempted to say that we do have too much government interference, and for me, ever since I took this position, it’s been one of the biggest challenges to deal with,” he remarked.
Oppong also raised concerns over the entry of new players into an already crowded market, suggesting that many applicants for oil marketing licenses either lack understanding of the business or have ulterior motives. “If anybody today has applied for an oil marketing company’s license, then the person either does not understand the business, or is up to something,” he said.
COMAC maintains that a fully deregulated market would empower private operators to set prices without excessive state control, potentially fostering greater competition and efficiency in Ghana’s downstream petroleum sector.
