COPEC calls for review of UPPF, warns against using fund as long-term fuel subsidy

The Chamber of Petroleum Consumers (COPEC) has called for a review of the Unified Petroleum Pricing Fund (UPPF), warning that the fund should not become a permanent tool for cushioning consumers whenever global fuel prices rise.

Speaking in an interview, COPEC Executive Secretary Duncan Amoah said although the government’s decision to reduce diesel prices by GH¢2 per litre offers timely relief to consumers, the UPPF was established for specific purposes and should not repeatedly absorb the financial burden of fuel price interventions.

According to him, “There are specific uses for these funds.”

He explained if the UPPF continues to record losses running into hundreds of millions of cedis, it may be time for policymakers to reassess how the fund operates.

“If you still get some losses running into the hundreds of millions, then maybe it’s time… we rationalize the UPPF.”

Mr. Amoah stated that the money in the fund ultimately comes from petroleum consumers, making it important to ensure it is used sustainably.

“The consumer pays for those monies already,” he said.

Despite raising concerns over the long-term use of the fund, Amoah said he supports the government’s latest intervention because it provides immediate relief to motorists and businesses.

He stressed, however, that Ghana must move beyond short-term measures and adopt policies that reduce the country’s vulnerability to fluctuations in the global oil market.

The comments follow the government’s announcement of a GH¢2 per litre reduction in diesel prices, with part of the cost being absorbed through the Unified Petroleum Pricing Fund (UPPF) to cushion consumers from rising international petroleum prices amid renewed geopolitical tensions.