NPA contributes GHs60bn to Ghana’s GDP – Mustapha Hamid

The Chief Executive Officer (CEO) of National Petroleum Authority (NPA), Dr. Abdul-Hamid has said the NPA contributes an amount of Sixty Billion  Ghana Cedis (GHs 60Bn) to Ghana’s Gross Domestic Product (GDP) yearly.

Dr. Abdul-Hamid made the above statement when he took turn to address the media during the Minister’s Press Briefing series at the Ministry of Information in Accra.

Speaking further, Dr. Hamid, indicated that the NPA during his tenure as the CEO has undertaken numerous interventions aimed at finding lasting solutions to some challenges such as integrity of product quality and quantity.

Activities Undertaken To Ensure Product Quality & Integrity

1. Supply of low Sulphur fuels (cleaner fuels), a maximum of 50ppm for imports and a maximum of 1500ppm for domestic production.

2• Periodic Petroleum Product Monitoring Exercises; 

i.Fuel Marker monitoring (PPMS)

ii.Quality monitoring of fuel standards (Quality Control) including 

checking of water in USTs

3. Collaboration with security agencies to prevent illegal imports, exports and product dumping

4. Use of technology (Electronic Cargo 

Tracking System (ECTS), National Fuel Monitoring System (NFMS) and the Automatic Tank Gauge system) to ensure intended delivery of petroleum 

products along the petroleum downstream value chain.

5. Revocation of Licenses and publication of the names of defaulting Petroleum Service 

Providers (PSPs)

Acccording to Dr. Hamid, prior to his tenure, there existed some situation before intervention, these includes; 

Diversion of subsidized product (Premix)

Fraudulent transportation freight claims (UPPF)

Illegal fuel supply activities: Export dumping, Illegal imports, Tax evasion

Product Quality and Quantity issues (water in fuel, adulteration, under delivery, etc)

Among others, the NPA Act, 2005 (Act 691) mandates the Authority to:

•Set the specifications of fuel and fuel related products; 

•Preserve the quality of fuel and fuel related products;

•Initiate and conduct investigations into the quality standards of petroleum products 

offered to consumers;

•Establish and maintain a Unified Petroleum Price Fund (UPPF)

According to Dr. Hamid, the under listed    results were achieved after the  NPA had implemented the above measures aimed at ensuring product quality and integrity.

•Reduced Sulphur levels of petroleum products (cleaner fuels), Industry benchmark set at 50ppm max for imported products and 1500ppm max for domestic products, Local production has gradually reduced to an average of 578ppm (produced by Akwaaba 

and PlatonRefineries), Imported products: PMS averages 15ppm& AGO average currently 13ppm, Reduction in dumping and 

illegal imports, Fuel Marking failure rates reduced over the time from 2.09% in 2021 to 1.37% in 2022, signifying a reduction in adulteration and Tax revenue savings to government amongst other positive results.

Touching of “Gold for Oil”  (G4O) Policy, Dr. Mustapha Hamid disclosed that, average monthly petroleum product import bill ranges from $350million -$400million also Petroleum downstream dollar demand accounts for 20%of national demand

Speaking further, her did indicate thay the Bank of Ghana (BoG) commenced a special auction programme for petroleum downstream in April 2022 but could not meet 100%of forex demand

•Inadequacy of BoG supply pushes BIDECs to speculate forex rates arbitrarily based on 

proposed rates from commercial banks

•Gold payment mooted as a solution to the pressure that petroleum downstream puts on the cedi 

Activities Undertaken under G40 policy include; 

Gold purchases commenced by BoG and Precious Minerals Marketing Company (PMMC), Purchased gold used for petroleum products imports through: Barter Channel and Broker Channel Bulk Oil Storage and Transportation  Company (BOST), imports up to 50%of the market demand whereas IOTCs and BIDECs import remaining 50%.

Additionally, NPA’s CEO mentioned that the Cedi proceeds are deposited with BoG to fund next cycle of Gold purchase and the NPA regulates G40 products prices on the interim (Ex-ref price and Ex-pump prices).

Dr. Hamid again disclosed that his outfit has Intensified price monitoring activities with penalties for defaulting service providers whiles laycans have been allocated and monitored to ensure adequate supply.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button