NPA seeks complete overhaul of Petroleum Authority Act 691 to address sector challenges

The National Petroleum Authority (NPA) is advocating for a comprehensive overhaul of the Petroleum Authority Act 691, asserting that the 20-year-old legislation fails to adequately address the dynamic challenges in Ghana’s downstream petroleum sector. During a recent meeting with Parliament’s Public Accounts Committee (PAC), NPA Chief Executive Officer Godwin Edudzi Tamakloe announced the need for a revision, stating that the current Act 691, specifically Sections 62 to 65, governs the entire regulatory framework.

Tamakloe emphasized that the legislation's age has rendered it outdated, as "the market is always ahead of regulation." He further explained that petroleum products warrant a distinct regulatory approach due to their critical importance to the economy and the potential impact of pricing decisions on consumers. Tamakloe cautioned that applying the same methodology used for commodities like cement could lead to market distortions.

He highlighted the example of cement pricing, which varies between communities, to illustrate his point, warning that extending this approach to petroleum could create similar disparities. The CEO also expressed concerns regarding the repercussions of pricing arrangements on consumers in northern Ghana, a region grappling with higher poverty rates.

He warned that imposing higher petroleum prices on these consumers without cause would exacerbate existing socioeconomic issues. The NPA CEO underscored the necessity for regulation to consider the downstream petroleum sector's primary and secondary distribution systems, stressing the importance of fairness and efficiency in the system.

Although Tamakloe hinted at the likelihood of a legislative proposal being presented to Parliament, he refrained from disclosing the proposed changes or the timeline for the formal introduction of a bill. The interaction with the Public Accounts Committee served as a platform for the Authority to elucidate the imperative of updating the legal framework governing the petroleum sector in Ghana.