Ghana: Fuel Marketers Face Cash Crunch After Government Price Cuts

Oil Marketing Companies (OMCs) in Ghana say the government’s push to lower fuel prices is forcing them to absorb millions of cedis in upfront costs.

Petrol margins were reduced by 36 pesewas, while diesel margins fell by Gh₵1.37, with a further 63-pesewa government subsidy bringing the total diesel price reduction to Gh₵2.00.

In a statement issued by the Chamber of Oil Marketing Companies (COMAC), the group warned that the move is squeezing cash flow across the downstream sector.

The Chamber clarified that the recent reductions in petrol and diesel prices were achieved through cuts in operational and regulatory margins—specifically the Primary Distribution Margin (PDM), BOST Margin, Fuel Marking Margin (FMM), and Unified Petroleum Pricing Fund (UPPF).

These margins cover key downstream operations such as fuel distribution, infrastructure maintenance, product tracking, and price stabilization.

According to the Chamber, the government has maintained all fuel taxes and levies, while requiring OMCs to pre-finance a shortfall of 63 pesewas per litre of diesel sold before reimbursement.

“For instance, a company distributing 10 million litres of diesel per month is required to advance an additional GHS 6.3 million to cover the shortfall of 63 pesewas per litre. Reimbursements typically take 45 to 60 days and do not cover capital costs, resulting in significant liquidity challenges for industry participants.

Simultaneously, companies must pre-finance distribution costs and meet statutory tax payment deadlines before receiving reimbursement, creating a double financing burden that weakens liquidity and increases regulatory risk.”

COMAC is urging the National Petroleum Authority (NPA) to reduce the current 45–60 day reimbursement timeline to ease working capital pressures on companies and help ensure a stable fuel supply.

It also called on the government to temporarily suspend or defer statutory tax and levy payments to the Ghana Revenue Authority (GRA) during this intervention period to relieve the industry’s double financing burden.

COMAC stated that it remains committed to transparent and constructive engagement with the government and all stakeholders to ensure that consumer interventions remain effective and financially sustainable for the sector.