News Guide Africa

Tag: NPA

  • Energy Minister storms NPA to engage staff on operations and industry Issues

    Energy Minister storms NPA to engage staff on operations and industry Issues

    The Minister for Energy, John Abdulai Jinapor, is paying a working visit to the National Petroleum Authority(NPA) as part of his ongoing stakeholder engagements within the energy sector.

    The visit provides an opportunity for the Minister to interact directly with management and staff on matters relating to the Authority’s operations, strategic priorities, and key industry developments.

    During the engagement, Mr. Jinapor would emphasise the government’s commitment to ensuring efficiency, transparency, and sustainability across the energy value chain.

    He would also listen to staff concerns, share insights on current policy directions, and reiterate the importance of collaboration in achieving national energy objectives.

    The meeting is at the NPA head office in Accra

     

     

     

     

     

     

     

  • NPA intensifies nationwide campaign against illicit fuel trade

    NPA intensifies nationwide campaign against illicit fuel trade

    The National Petroleum Authority (NPA) has stepped up its nationwide campaign to clamp down on all forms of illicit fuel trade as part of efforts to sanitise the downstream petroleum industry.

    The initiative is in line with the vision of the NPA’s Chief Executive, Mr. Godwin Kudzo Tameklo, to ensure transparency, accountability, and efficiency within the sector.

    So far, the Authority’s team has extended the campaign to the Ashanti, Eastern, Central, and Western Regions, where they held stakeholder and media engagements to educate the public on the dangers of illicit fuel activities.

    Officials also reminded participants of the NPA’s regulatory mandate and stressed that offenders risk facing severe punitive sanctions under existing laws.

    The Authority says it will continue to roll out similar engagements across the country to safeguard the integrity of Ghana’s petroleum downstream industry.

     

     

     

     

     

     

     

     

     

  • Fuel stations to go through quality grading and labeling – NPA 

     

    Adnan Adams Mohammed

     

    Effective next year, the National Petroleum Authority (NPA), will be rolling out a stringent grading and labeling control mechanisms to help address concerns about the quality of petrol in the country.

     

    The labeling will be done in accordance with the level of octane contain in the bulk fuel tank at a station at all times. 

     

    Over the years there have been complaints from consumers about quality of fuel sold to them at the pumps. However, in most recent times, there have numerous reports of damaged spark plugs attributed to poor standard fuel at the pumps. It is in response to these that the NPA has decided to label pumps for petrol based on their octane grades.

     

    “I can say that there is no tainted petrol on the market”, Ubeidalah Saeed, the Head of Quality Control at NPA said in an interview last week. “Vehicle owners may be purchasing the wrong fuel for their cars, leading to performance issues.”

     

    Although, Mr Saeed shared that, he has also experienced vehicle troubles, emphasised the importance of considering the ‘octane level’ of the fuel when addressing problems such as car jerking.

     

    He explained the NPA’s approach: “It costs about 500 dollars to test for octane, so we started testing for octane and realised that all the petrol we’re testing were meeting the octane levels.”

     

    Mr Saeed highlighted that each vehicle has a minimum octane level requirement for optimal performance.

     

    To provide clarity and prevent misconceptions, the NPA has decided to label petrol pumps based on octane levels starting next year.

     

    Ghana will have two grades of petrol – RON 91 (red) and RON 95 (green), the latter being a high-grade petrol known as premium petrol suitable for high-performing vehicles.

     

    Mr Saeed’s announcement aims to ensure consumers make informed choices and use the appropriate fuel for their vehicles.

     

    He made this announcement while addressing the issue of contaminated fuel on Joy FM’s Super Morning Show on Monday, December 11, 2023.

     

  • ‘Gold for Oil’ deal suffers critical scrutiny…gov’t told to take a second look at it

    Adnan Adams Mohammed

     

    The ‘Gold for Oil’ policy has faced critical scrutiny by stakeholders challenging the government’s white wash claims that the policy as implemented has been a success.

     

    Newest to add his voice to the critics is an Energy Strategist who is advising government to take a second look at the ‘Gold for Oil’ Programme as it has not impacted on prices of petroleum products at the pumps.

     

    Last week, some Oil Marketing Companies withdrew from the programme due to unresolved concerns. The government’s gold for oil policy as a government strategy was borne out of the country becoming strapped of foreign exchange. The policy is to enable the government directly exchange gold for oil while avoiding to use foreign currency, particularly the dollar, as a means to control the country’s inflation. The Strategist, who believes the intended purpose of the policy has not been achieved, wants a review of the programme.

     

    “The problem is that it’s not being able to stabilise the cedi that we want to stabilise. At best maybe it has minimised the depreciation rate and that’s not what we wanted”, Dr Yussif Sulemana pointed out to the managers of the economy.

     

    “It’s quite unfortunate and the champions of the programme will have to relook at it and look at the successes and weigh against what we are trading on”.

     

    He quizzed “Are we ready to disturb these institutions [OMCs] just to stabilise the cedi that we are not able to have a firm handle on?”

     

    “At this point in time and in that case, I think the programme needs to be reviewed and if it cannot be reviewed, then we have to just advise ourselves”, he added.

     

    Also, some Civil Society Organisations (CSOs) in the energy sector have challenged government to publish the names of third-party dealers involved in the ‘Gold for Oil’ programme.

     

    The call comes after some Oil Marketing Companies pulled out of the programme due to unresolved concerns.

     

    The Ghana Chamber of Bulk Oil Distributors has announced that some of its members are also unhappy with concerns raised on the implementation of the programme.

     

    Energy Analyst, and Co-Chair of the Ghana Extractive Industries Transparency Initiative, Dr Steve Manteaw said the government must publish the names of all intermediary dealers in the programme to promote transparency.

     

    He added that the current mode of the programme creates room for some operators to take advantage of the system.

     

    “There is no disclosure in terms of who is financing the domestic gold purchasing in this transaction. We are going to resort to the services of a third party. For instance, who is selling Ghana’s gold? if it’s a broker then the broker services have to be disclosed”.

     

    Dr Manteaw stated lack of transparency will encourage corrupt acts that may defeat the purpose of the programme.

     

    “I think it’s fair to ask questions. How much is the broker being paid and how does it affect what we receive as a country in terms of reserves”, he quizzed.

     

    In recent publication, a key player in the extractive industry, the Chairman of Ghana Chamber of Bulk Oil Distributors, Dr. Patrick Kwaku Ofori, says the government’s gold for oil policy has cornered bulk oil distributors working in the country.

     

    Noting that, none of the BDCs had anticipated such a policy as it places them in a tight spot in competition against the government.

     

    Dr. Ofori, speaking in an interview indicated that, the policy will have a toll on the regulators’ revenue generation, “because none of the BDCs or those BDCs who have paid their license fee did not necessarily pay for a license fee to be cornered a percentage of the matter.”

     

    “They want to be given the right climate to conduct their business. And also don’t forget these private entities also employ Ghanaians and they also pay their taxes.

     

    “So it’s a bit of a tricky situation there, and the programme obviously impacted on private sector participation judging from how private sector can also assess the proceeds of the revenue coming from the gold purchases.”

     

    He however suggested that government could change their policy to allow private sector engagement.

     

    “But if government intends to change their policy with regards to the gold for oil and allow private sector participation and say that ‘well as a country, all our revenue that we’re going to generate from maybe gold export, we’re going to use maybe a percentage of it to finance our refined product importation .

     

    “And by so doing, either through the Central Bank reactivating the forex option so that both the private sector and the public entities who are interested in importing refined products can go through those competitive processes to be able to have the product.’”

     

    He also stated that another option was for the Bank of Ghana to surrender all gold proceeds and revenue in a way to guarantee forex availability to the commercial banks for all importers to have access to them.

     

     

     

     

  • NPA ordered to be effective in monitoring of OMCs pricing under G4O

    NPA ordered to be effective in monitoring of OMCs pricing under G4O

    Adnan Adams Mohammed

     

    The ministry of energy has bemoaned loose regulatory monitoring of Oil Marketing Companies (OMCs) which has benefited under the Gold for Oil (G4O)first consignment.

     

    A deputy minister at the ministry has revealed that, about 11 OMCs which received the cheaper oil under the new arrangement  did not reduce their pump price.

     

    The ministry is taken aback with the situation, indicating that had been a setback on the policy’s intent to improve the supply of the commodity, positively influence price change, and shore up the exchange reserve of the country. The deputy minister therefore called on the National Petroleum Authority (NPA) to be up and doing in its monitoring role to ensure that the policy intent is achieved.

     

    “National Petroleum Authority (NPA) has to be very rigorous in ensuring that the framework that will be published to govern the pricing of the product is a strong framework”, Dr Amin Adam Mohammed, the Deputy Minister for Energy said in an interview.

     

    “And they have to ensure that they are able to monitor all those OMCs that will take the product to ensure they reflect in their pump prices.”

     

    Ghana piloted the Gold for Oil policy with the delivery of 41,000 metric tonnes from the United Arab Emirates (UAE), which arrived at the Tema port on Sunday, January 15, 2023.

     

    However, Mr Duncan Amoah, the Executive Secretary of the Chamber of Petroleum Consumers Ghana (COPEC), said it was encouraging to have more than 50 percent of OMC reducing their prices under the policy.

     

    He, called for “purposeful planning” with a clear objective of either ensuring fuel security or reduction in pump prices. That, he said, would require a constant supply of the commodity on the market to meet the demands.

     

    “You must be focused and know that 41 000 metric tonnes might not do the trick. So, If I am bringing 41, another cargo must come at 60, and must come at 70, to be able to contain the market demand.

     

    “If you are going to throw a little in the ocean and expect a ripple effect, you might not get it,” he said.

     

    The prices of fuel in Ghana are mainly determined by the world market price of the commodity, cedi depreciation, taxes and levies. As of November 2021, the government had imposed 12 different taxes and levies on petroleum products while the Cedi had declined by more than 55 per cent between January and October 2022.

     

    Mr Amoah urged the Bank to Ghana (BOG) to focus on addressing the volatility of the Cedi by, “using the gold to back the Cedi so that it can have a certain semblance of stability for trading.

     

    Consequently, Mr Alex Mould, a former Chief Executive Officer (CEO) of the Ghana National Petroleum Corporation (GNPC), said the Gold-for-Oil policy was a smokescreen by some players to enter and control the oil import and gold export market using government apparatus.

     

    “People with the license to these things are not happy because they can be eliminated,” he stated.

  • LPG price to go down as NPA seeks Cabinet support to remove taxes

    LPG price to go down as NPA seeks Cabinet support to remove taxes

    The National Petroleum Authority (NPA) is seeking the approval from Cabinet to remove taxes on Liquefied Petroleum Gas (LPG) to make it available to Ghanaians and to ensure clean cooking in the country.

    The Chief Executive Officer of NPA, Dr Mustapha Abdul- Hamid, made this disclosure while speaking at the launch of the National Awareness and Sensitisation Campaign on the use of LPG in Accra.

    According to him, the decision to achieve 50 per cent LPG penetration with the introduction of the Cylinder Recirculation Module (CRM) will be achieved if the taxes on the products are removed.

    He said the NPA intends to make LPG affordable and accessible in the country with the CRM as the cylinder bottling company will own the cylinders and later supply them to the customers.

    He added that this will ensure the cylinders’ safety and push distribution to the country’s remote areas.

    He appealed to investors to come to the northern region to establish a cylinder bottling plant for a rebate to ensure people in these regions access affordable LPG.

    “I will call on investors ready to invest in the area of a cylinder bottling plant in the North East and Upper East Regions to get some tax holidays,” he assures.

    For her part, the Ambassador for Clean Cooking Campaign and wife to the Vice President, Samira Bawumia commended NPA and the Ministry of Energy for their drive in ensuring LPG is affordable and available to Ghanaians as part of the clean cooking campaign

  • 5years ban on construction of new gas filling stations lifted

    5years ban on construction of new gas filling stations lifted

    Adnan Adams Mohammed

    The five years old ban on construction of new Liquefied Petroleum Gas (LPG) stations in the country since 2017, has been lifted last week.

    The National Petroleum Authority announced the lifting of ban as an emergency solution to end a strike action by Gas tanker drivers and LPG Marketing Companies which led to the scarcity of gas for domestic and commercial use across the country.

    The striking drivers and LPG marketers, apart from their poor working conditions, they also cited the ban on the construction of gas stations across the country as a major reason for their strike.They threatened not to return to work until their grievances were addressed.

    “Cabinet has granted a special dispensation to allow the completion of the construction of stranded LPG stations across the country”, the NPA stated in a press statement last week.

    The NPA has asked all Oil Marketing Companies and LPG companies to begin processes for approval to continue their construction works.

    “We are, therefore, requesting all OMCs/LPGMCs who were affected by this directive to resubmit their applications to the Authority”, the statement added.

    Following the Atomic Gas Explosion that killed at least 7 people and injured 132 in Accra, Government after a crucial cabinet meeting, announced a number of directives, about ten of them, geared towards sanitizing the fuel distribution and retail sector, to improve safety and save more lives.

    One of the decisions, as approved by the President, was an immediate cessation of the construction of new fuel stations, to allow the NPA and its allied agencies, to carry out a proper audit of all the facilities.

    The President also ordered the implementation of the Cylinder Re-circulation Model of Liquefied Petroleum Gas distribution within a year.

    The module, proposed by NPA, will ensure that LPG filling points are sited out of densely populated areas and commercial centres.

    According to the statement signed by the Chief Executive of the NPA, Dr. Mustapha Abdul-Hamid, “We are pleased to inform you that Cabinet at its 35th Sitting, held on August 3rd 2022, has granted a special dispensation to allow the completion of the construction of stranded LPG stations across the country, that were affected by the ban on the construction and operation of new LPG facilities in 2017.”

    Mr Hamid urged all entities affected by the ban to resubmit their applications to the NPA.

    The Tanker Drivers and LPG Marketing Companies have consequently called of their strike.

    The Ghana National Tanker Drivers Association had complained about its working conditions and treatment from the authority and the Bulk Oil Storage and Transportation Company.

    The drivers also raised concerns with the seals and tracking devices that check the integrity of the fuel in the transportation process.

  • Fuel shortage imminent as cedi falls amidst oil prices spikes – Think-tank

    Fuel shortage imminent as cedi falls amidst oil prices spikes – Think-tank

    Adnan Adams Mohammed

    An energy think-tank has indicated that the country could experience a fuel shortage in the coming days.

    He said the shortage will be influenced by the depreciation of the cedi and the increase in oil prices on the international market.

    The Russia-Ukraine invasion induced unprecedented spike in crude oil and gas prices is troubling many economies. This, coupled with the escalating U.S dollar exchange rate to the local currency (Cedi) threatens petroleum products supply in the country.

    “I regret to announce this bad news. I hope it doesn’t happen. What we have observed over the past few months within the downstream sector of the Petroleum industry is that the depreciation of the cedi and the international oil price rise is impacting negatively on their working capital”, said, the Executive Director of Institute of Energy Security (IES), Nana Amoasi VII.

    “Between the last few weeks, the cedi has depreciated from about GHS 7.00 to GHS 7.4 giving a clear 40 pesewas on their business. If we are bringing the same quantity of 600 metric tones today, you will need GHS 7.40. That will amount to about GHS 4, 440 and so 30,000 metric tonnes in the next window, you will need an equivalent of about GHS 7.2 million. A clear depletion of wiring capital.”

    These factors,  according to him, will lead to the importation of less fuel into the system.

    “If the situation continues and it is sustained, we will see a fuel shortage,” he added.

    The Chief Executive Officer (CEO) of the Ghana Chamber of Bulk Oil Distributors, Senyo Hosi held a conflicting view.

    “Not at all, there won’t be an imminent shortage of fuel. I can understand their concern. It is legitimate. But we need to understand that this will not be the first time we will be working with prices around $1000 per metric tonne.

    “What we just have to do is to anticipate and make sure that we move credit alongside the same levels required to sustain prices.”

    He indicated that stakeholders have preempted the situation.

    “We have been proactive about this. We have been engaging the Central bank to deal with the issues of supply.”

    “We have also been engaging the NPA as well as the International oil traders to find ways to deal with the credit crunch that we may face because of the rising prices.”

    Fuel prices at some fuel stations have crossed the GH¢8 per litre mark in the first week of March 2022 with predictions that the commodity will sell at GH¢9.00 per litre by close of the month.

    The National Petroleum Authority (NPA) has already said discussions are ongoing with the Ministries of Finance and Energy to find a manageable solution to the persistent rise in fuel prices.

    It said the deliberations will focus largely on the possible removal of some taxes on petroleum products.

    “We are also concerned, there are a lot of discussions we are having with the Ministry of Energy, and we are seeing if together with the Ministry of Finance, we will make some proposals,” Head of Pricing at the NPA, Abass Ibrahim Tasunti earlier said.

  • Fuel price spikes: NPA to remove taxes to manage prices

    Fuel price spikes: NPA to remove taxes to manage prices

    Adnan Adams Mohammed

    As consumers of petroleum products keep calling on government to intervene to help tame or reduce the rate of increase in prices, the National Petroleum Authority (NPA) has assured of a possible solution.

    The Authority indicates that, discussions are ongoing with the Ministries of Finance and Energy to find a manageable solution to the persistent rise in fuel prices.

    Within the past few weeks, prices of fuel at the pumps have consistently rise to hit an all-time high of about GHC8.30 per litre as at last week. Consumers have attributed the spikes to exchange rate escalation and too many taxes. But, NPA believes the discussions with the ministries will focus largely on the possible removal of some taxes on petroleum products.

    “We are also concerned, there are a lot of discussions we are having with the Ministry of Energy, and we are seeing if together with the Ministry of Finance, we will make some proposals,” Head of Pricing at the NPA, Abass Ibrahim Tasunti has said.

    Fuel prices at some fuel stations have crossed the GH¢8 per litre mark in the first week of March 2022 with predictions that the commodity will sell at GH¢9.00 per litre by close of the month.

    But Abass Ibrahim Tasunti maintains that the situation can be blamed largely on current happenings on the global oil economy; thus, the government will play a role in cushioning citizens.

    “For us, we don’t make the fiscal and economic policies for government on how we regulate the fuel industry because the pricing is done according to world formula. If you look at the taxes in the formula, they are approved by Parliament. So, if any of them are to be removed, it has to go back to Parliament.”

    In the meantime, the Minority in Parliament is demanding the immediate scrapping of taxes in the petroleum price build-up that have outlived their purpose.

    It argues that those taxes constitute about 40% of the price build-up on the products.

    Making a strong case for its removal, the minority said such a move would drastically reduce the price of fuel and subsequently relieve Ghanaians who have endured high prices of the products.

    “At the time the price of crude in the world was around US$30 we had a problem with the FPSO Kwame Nkrumah crude, so production came down.”

    “That is why the Special Petroleum Tax was introduced to help us rake in some revenue. In the 2016 budget, we had introduced sub-clauses that by 2017 this tax should be off and the reason is that by then, we would have sorted the issues with the FPSO Kwame Nkrumah”, Member of Parliament’s Mines and Energy Committee, Edward Bawah said.

    The Institute for Energy Security (IES) is also predicting a four percent increase in the prices of Liquefied Petroleum Gas (LPG), Diesel, and Petrol at the pumps in the first pricing window of March.

    A barrel of Brent Crude Oil which was going for about $66 a year ago, and $78 at the start of 2022, jumped 7.3% to $103.9 a barrel in February.