Dr Riverson Oppong, CEO of the Chamber of Oil Marketing Companies (COMAC), has criticised government intervention in Ghana’s fuel pricing regime, arguing that the sector must be allowed to operate under full price deregulation.

His comments come as government continues to subsidise diesel amid rising international oil prices, with interventions in the pricing structure remaining a key feature of the downstream petroleum market.

According to Dr Oppong, the oil marketing industry has consistently pushed for full deregulation because companies operating in the sector are private businesses that raise their own funds to operate.

“This is an industry where we have pushed for a full price deregulation policy,” he said.

He questioned why government should have a role in determining how private businesses price their products in what is supposed to be a free-market economy.

“What is sometimes, I know, the regulation bit, the external hand that tries to come in, because if I’m a private business, I borrow money to run the business. Who is going to determine what I charge for my goods, a ceiling, a cap and all those things, because we are a free market economy,” he said.

Dr Oppong acknowledged that some components of the pricing structure have been deregulated. However, he said government interventions remain in the system.

“There are aspects of the pricing price builder today that are not fully deregulated. For sure, I can say that the margins of some components of the SREF are kind of deregulated, but we still have government interventions,” he said.

He cited government’s decision to subsidise fuel as evidence of the continued intervention in the sector.

“That’s why the government can say it’s giving subsidy,” he said.

The COMAC boss said government interference has become one of the biggest challenges he has faced since taking over his current position.

“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. That is government intervention,” he said.

He also questioned the continued expansion of the oil marketing sector, arguing that the existing number of players is already substantial.

“So government intervention in the business we do, and like we said, if you look at the number of players we have in the industry, if anybody today has applied for an oil marketing company’s license, then the person, indeed, for two reasons and I’ll say it, unapologetically, that the person either does not understand the business, or is up to something,” he said.

He added: “Because what is it that you want to do that the 245 players cannot do?”