NPA puts buffers in place to stop fuel firms holding Ghana to ransom

The National Petroleum Authority (NPA) in Ghana has implemented measures to prevent private fuel companies from monopolizing petroleum supplies and coercing the government. NPA CEO Godwin Edudzi Tamakloe assured the public that the nation currently has a minimum of six weeks' worth of fuel reserves, which is sufficient to stave off any potential shortages.

The increased volume of petroleum products on vessels en route to Ghana provides further reassurance for the domestic market. The NPA has also raised the price floor for petrol and diesel, setting a minimum price of GH¢16 per litre for petrol and GH¢16.77 per litre for diesel. These recent price adjustments were prompted by rising global crude and refined petroleum prices.

Amidst these developments, BOST Energies, a fuel-exporting company, temporarily reduced its supply volumes to Burkina Faso and Mali due to concerns over global supply conditions. However, Tamakloe emphasized that Ghana currently does not face an imminent fuel shortage. The primary concern for the NPA is currently the escalating fuel prices rather than the availability of petroleum products.

When asked about the possibility of supply disruptions, Tamakloe dismissed such fears, citing the efforts of exporting countries to attract more suppliers into the market. He also clarified that the NPA's downstream petroleum sector is structured to encourage private sector participation under the enabling law, Act 691, which has fostered various industry layers, including Bulk Distribution Companies and Oil Marketing Companies, with limited direct state involvement.

Despite these efforts, Tamakloe acknowledged the potential risks of private companies exerting excessive influence on the government, acknowledging it as a significant concern for the President of Ghana.