NPA pushes for tougher laws on illegal fuel stations
By Praisebell Rosemond Larbi
The National Petroleum Authority (NPA) is calling for a sweeping review of Ghana’s laws governing the petroleum downstream sector, proposing tougher sanctions to curb the spread of illegal fuel stations across the country.
The authority argues that current penalties, some of which are capped at less than GHS20,000, are woefully inadequate and fail to serve as effective deterrents against unauthorized construction and operation of fuel outlets, many of which pose serious safety risks to the public.
At a recent meeting with Parliament’s Energy Committee, Chief Executive Officer (CEO) of the NPA, Godwin Edudzi Tamakloe, warned of the growing number of unlicensed fuel stations operating in unauthorized locations, some of which have been linked to deadly explosions.
“If the penalties are punitive enough, it will discourage those unscrupulous people from setting up filling stations in unauthorized places,” Mr. Tamakloe stated.
He cited the tragic 2017 gas explosion near Atomic Junction in Haatso, which claimed at least seven lives and left more than 130 injured, as a sobering reminder of the consequences of regulatory lapses.
“We all remember the event that happened at Haatso and the panic it caused throughout the system. We are working hard to minimize those incidents,” NPA CEO said.
The current disciplinary framework, as outlined in the NPA’s regulatory guidelines, imposes relatively lenient penalties. For instance, constructing a fuel retail outlet without authorization carries a fine equivalent to five times the construction permit fee, while selling adulterated fuel incurs a maximum penalty of GHS20,000. These sanctions, Mr. Tamakloe argued, do not reflect the scale of risk or the substantial profits illegal operators often make.
Industry experts agree with the NPA’s position, suggesting that fines should be increased by as much as 500 percent, along with custodial sentences where necessary, to improve compliance and accountability.
The proliferation of unauthorized fuel stations not only poses safety hazards but also undermines public trust in regulatory institutions and deprives the state of crucial tax revenue. A 2017 report estimated that Ghana loses approximately GHS850 million annually to illegal fuel trading, including smuggling and sales through unapproved outlets.
The NPA, established under the National Petroleum Authority Act, 2005 (Act 691), is mandated to regulate and monitor activities in Ghana’s petroleum downstream sector.
However, its ability to enforce compliance has been hindered by outdated legal provisions and inadequate punitive measures.
The authority is now urging Parliament to consider amending the law to introduce stiffer penalties that not only reflect the seriousness of the offenses but also act as effective deterrents to would-be violators.
