Why Government doesn’t control most fuel stocks – NPA boss explains

Mr. Godwin Edudzi Tamakloe, CEO of the National Petroleum Authority (NPA), has clarified why the government in Ghana does not directly control most of the country's fuel stocks. This is due to the country's petroleum industry being intentionally designed with private-sector participation. His remarks come as fuel security concerns have resurfaced due to global petroleum market pressures and rising fuel prices.

To address these concerns, the NPA has raised price floors for petrol and diesel from September 16, reflecting increased international market costs. The government has also implemented measures to protect consumers from the impact of higher petroleum prices.

Speaking to Joy News, Mr. Tamakloe stated that Ghana currently has at least a six-week supply of fuel, even accounting for the number of petroleum vessels currently on the high seas. The NPA boss emphasized that his primary concern was not the availability of petroleum products but the repercussions of rising prices.

He addressed concerns about potential supply challenges in the coming weeks due to export cuts by some oil-producing countries. He assured that he did not anticipate immediate supply issues, citing the growing significance of the Dangote refinery in the regional petroleum market.

Regarding the level of government-controlled fuel stocks, Mr. Tamakloe explained that Ghana's downstream petroleum industry architecture was purposely structured to encourage private-sector participation. The enabling law, Act 691, established layers within the industry, such as Bulk Distribution Companies and Oil Marketing Companies, with limited direct involvement from the state.

While acknowledging the potential for private companies to exert pressure on the state during supply stress, Mr. Tamakloe highlighted the safeguards put in place to prevent a recurrence of past challenges, such as those in 2014-2015. He emphasized that preventing private operators from gaining excessive leverage to hold the country hostage remains a significant concern for the President of Ghana.