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NPA to sanction non-compliant oil marketing companies to protect downstream petroleum industry

Edzorna Francis Mensah by Edzorna Francis Mensah
May 13, 2025
in Economy, News
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NPA to sanction non-compliant oil marketing companies to protect downstream petroleum industry
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The acting Chief Executive of the National Petroleum Authority (NPA), Lawyer Godwin Kudzo Tameklo, has reaffirmed the Authority’s commitment to ensuring compliance with the rules and procedures governing operations in the country’s downstream petroleum industry.

He stated that while the NPA would bring a human face to the law, sanctions would be enforced against industry players who violate the established rules.

Mr. Tameklo made these remarks at the opening of the second edition of the NPA Downstream Compliance Workshop in Accra on Monday.

In attendance at the three-day event are representatives from Bulk Oil Import, Distribution and Export Companies (BIDECS), Oil Marketing Companies (OMCs), LPG Marketing Companies (LPMCs), Refineries, Storage Depots, Allied Facilities Operators, and transport companies.
Topics covered at the workshop include Unified Petroleum Price Fund Regulations and Claims Management, Compliance in Petroleum Product Imports, Exports and Distribution Operations.

Others are Licenses, Permits, Legal Requirements, and Local Content. Insights and recommendations from these sessions are expected to be consolidated into actionable strategies to drive compliance.
The NPA Boss assured stakeholders in the downstream petroleum industry that he would protect their businesses while also enforcing the law to ensure industry growth and sustainability.

“As the acting CE of this Authority, I will not do anything to harm your business, but if you go contrary to the law, we will ensure full compliance. We will continue the partnership, but let there be mutual respect.

“We will ensure increased compliance. We will also ensure compliance with the rules and procedures. The reason we have to do that is for our collective safety. Central to this is the issue of compliance to make the industry feel comfortable for all players ”, he said.

He cited a few fire incidents including the Atomic Junction fire that occurred in 2017 that resulted in the loss of lives and property.

The NPA Boss observed that people would want to intervene for offending companies but he would not tolerate that.
Mr. Tameklo noted that regulations are the core of the work of the NPA, and wondered the point of setting up rules without compliance.
“Regulations come with the law, and the law is the law. Once the law is the law, it comes Non-compliance comes with sanctions”, he said.

Mr. Tameklo announced that the Authority aims to humanize the current system that deactivates defaulting companies from the NPA’s portal.
He stated that the companies would be given a five-day grace period to comply, so as not to disrupt their operations.

However, he warned that companies that failed to comply within these five days would have to take responsibility for their actions.

The NPA Chief Executive also called for collaboration among all stakeholders to help shape the future of the country’s downstream petroleum industry.
In his remarks, the CEO of the Chamber of Bulk Oil Marketing Companies (COMAC), Dr. Riverson Oppong, noted that while the downstream petroleum industry holds significant potential for growth, it is often burdened by excessive regulatory oversight and lengthy bureaucratic processes.

He said these obstacles lead to market inefficiencies, delays in product availability, and rising costs that ultimately affect consumers.
Dr. Oppong urged stakeholders to prioritize timely financial obligations, noting that effective sector operations are heavily dependent on prompt payments and streamlined processes.

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“For the downstream sector to thrive, we must overcome these bureaucratic bottlenecks and ensure regulatory processes are swift and transparent,” he said.

Dr. Oppong also highlighted the growing demand for petroleum products in regions like the Upper East, adding that strategic planning and better regulatory frameworks are crucial for sustainable growth.

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