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Ghana: National Petroleum Authority to revoke licenses of 80 oil marketing companies

05 Aug 2021

The National Petroleum Authority (NPA) of Ghana will be revoking the licenses of 80 oil marketing companies (OMCs) soon, says its Chief Executive Officer as reported by GhanaWeb.

Dr. Mustapha Abdul-Hamid was at a meeting with board members of the Association of Oil Marketing Companies (AOMCs) at the Ghana Institute of Management and Public Administration (GIMPA) on Monday (2 August).

The meeting was part of his stakeholder engagements, meant to open channels of dialogue for the smooth operation of the industry.

“We shall not hesitate to revoke the licenses of industry players who continually flout the rules,” he said.

“Over the years, the NPA has been too lenient with people who flout the rules. And this has given opportunity to many people to flout these rules with impunity.

“We cannot all be in a conspiracy to run down our country and yet turn round and blame government for what goes wrong”

Dr. Abdul-Hamid said illegal bunkering, third-party supplies and failure to pay taxes and levies due government are all gross violations of the law and henceforth, those found culpable will face the full sanctions as permitted by law.

There are 170 OMCs currently operating in Ghana’s oil sector; 80 such firms have not been working or lifting products or paying taxes, leading to a loss of revenue for NPA.

“If I have 100 or even 70 OMCs who are all efficient, and are playing by the rules and are paying their revenues to the government, we will be fine,” stated Dr. Abdul Hamid, as quoted by GhanaWeb.

The CEO of NPA said after 16 years of operation, the NPA Act (Act 691) will be reviewed to meet with current trends in the downstream petroleum industry.

In reviewing the NPA Act, the licensing and inspections regime will be looked at, to make sure that those who acquire OMC licenses really have the capacity to operate in the industry.

“As the industry is being sanitized, all those who have fallen short of the requirement will have their licenses revoked,” he ends.

 

Photo credit: National Petroleum Authority
Published: 5 August, 2021

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