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The National Petroleum Authority (NPA) has terminated the operating licenses of some five bulk oil distribution companies (BDC) involved in the Ghana oil refinery process.
The companies affected include Imperial Energy Limited, Mimshack Energy Limited, LIB Ghana Limited, WI Energy Limited and Rochelle Energy Limited.
In the Authority’s 2019 report, these companies did not comply with their financial responsibilities enshrined in the law, which resulted in the revocation of their licenses.
Additionally, the NPA indicated that there was a revision of BDC’s annual license fee from $ 400,000 to $ 300,000 after further discussions between the Authority and the Chamber of Bulk Oil Distribution Companies (CBOD).
According to the latest update from the National Petroleum Authority, the concentration of market activity in the sector remains unchanged despite an increase in operating companies.
The report indicated that the number of CDBs that imported products above 100 billion tons increased from seven in 2018 to nine in 2019.
“The 80 percent market share controlled by the nine CDBs calls into question the commercial viability of the 12 CDBs whose imports were below 50 billion tonnes, given their operating expenses and an annual license fee of US $ 400,000.” added the Authority.
Meanwhile, there has been a 7 percent growth as a result of an increase in the number of oil trading companies (OMCs).
In 2019, there were 120 companies in operation compared to 112 reported in 2018.
The number of retail outlets operated by the OMCs also increased from 2,944 to 3,055 in 2019.
The National Petroleum Authority is an institution established by an Act of Parliament (NPA Act 2005, Act 691) to regulate the petroleum industry in Ghana.
Once again, the Authority as a regulator ensures that the industry remains efficient, profitable, fair, and at the same time ensures that consumers receive good value for money.
