COMAC CEO demands full fuel price deregulation, says government must stop fixing pump prices

Dr Riverson Oppong, Chief Executive of the Chamber of Oil Marketing Companies (COMAC), has publicly demanded that the Ghanaian government fully deregulate fuel pricing. In a statement issued on Wednesday, he argued that the current system of state‑set ceilings and subsidies distorts the market and forces private businesses to operate under artificial price controls. He stressed that oil marketing firms are private entities that raise their own capital and therefore should be free to set their own retail rates without interference.

Dr Oppong made the remarks while answering questions about the recent rise in diesel and petrol prices at the pumps. He pointed out that, despite a series of government‑led price adjustments, the state continues to intervene through the Uniform Fuel Pricing Fund and direct subsidies on diesel. According to him, these interventions undermine the competitiveness of the downstream petroleum sector and discourage private investment.

The COMAC chief explained that only parts of the pricing formula have been deregulated so far, but the overall structure still bears the imprint of government regulation. He warned that continued caps on profit margins and the practice of subsidising fuel create a situation where marketers are unable to cover their costs, leading to what he described as "bleeding" for the industry.

Oppong also questioned the logic of maintaining a large number of licensed oil marketing companies when the market appears saturated. He suggested that new entrants who seek licences either do not understand the business or have ulterior motives, implying that the current regulatory environment encourages unnecessary expansion.

The CEO’s call for full deregulation comes at a time when international oil prices remain volatile and local fuel prices have been adjusted upward several times this year. COMAC has been vocal about the need for market‑driven pricing, regularly issuing statements that link price movements to global trends rather than domestic policy decisions.

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The issue is likely to influence ongoing discussions in the petroleum sector and may prompt further parliamentary scrutiny of the subsidy programme as the government seeks to balance fiscal pressures with market liberalisation.