COPEC urges revamp of TOR and BOST, says tax suspension offers only short-term relief

The Chief Executive Officer of the Chamber of Petroleum Consumers Ghana (COPEC), Duncan Amoah, has urged government to prioritise the revamping of the Tema Oil Refinery (TOR) and the Bulk Oil Storage and Transportation Company (BOST) as part of long-term measures to strengthen Ghana’s resilience against external shocks in the petroleum sector.

According to him, while the recent suspension of taxes on petroleum products is a welcome relief for consumers, it remains only a short-term intervention that does not address underlying structural challenges in the sector.

Speaking on TV3’s News Central on Friday, Mr Amoah noted that global developments, including ongoing geopolitical tensions, continue to exert pressure on refined petroleum products, making long-term planning necessary.

“Suspending the taxes is very good, but make provisions for further resilience because the war, even if it ends today, will still have pressure on finished products globally because refining has been compressed as we speak, and it is not likely they will be able to fix whatever has been broken down in the next three to four weeks,” he said.

He stressed the need for Ghana to strengthen its domestic petroleum infrastructure to reduce dependence on external markets.

“At this point, our very crucial national assets, we will need to see how they also contribute to our net national demand or supply so that even if Europe cannot be able to provide the products we require, we can fall on our own resilience,” he added. “The tax conversation is very good but it is only a temporary relief that it can offer. I think that BOST and TOR would have to be looked at again.”

His comments come after Government Communications Minister Felix Kwakye Ofosu announced that Cabinet has directed the Finance and Energy Ministries to remove taxes and margins on petroleum products in the next pricing window.

He said the measure, which follows an emergency Cabinet meeting on April 9, is intended to cushion consumers against rising fuel prices linked to global geopolitical tensions.

Mr Kwakye Ofosu explained that the tax removal would take effect for an initial four-week period, after which it will be reviewed.

He also disclosed that the Transport Ministry has been tasked to expedite the deployment of 100 newly acquired Metro Mass Transit buses across high-traffic routes to ease transportation challenges.

According to him, additional batches of 100 buses each are expected in August and November, bringing the total to 300.

He further noted that transport fares on government-operated buses are expected to remain below private sector rates to provide relief to commuters during peak periods.

Mr Kwakye Ofosu also reiterated President John Dramani Mahama’s directive banning fuel allowances for ministers and senior government officials as part of broader austerity measures.