Downstream petroleum has grown by 15% in 2018 – NPA

Company News of Thursday, July 11, 2019

Source: Myjoyonline.com

2019-07-11

The downstream petroleum sector has seen a 15% increase in petroleum product consumption in 2018.

This was the result of efforts to combat illicit fuel-related activities, as well as deliberate technology-based programs and policy initiatives to stimulate private sector growth.

The director general of the National Petroleum Authority, Hbadan Tampuli, who revealed this information at the third edition of the International Petroleum Conference in Ghana (GhIPCon) 2019, said that consumption had increased by 15% from 3.4 million Mt in 2017 to 3.9 Mt in 2018. "

He added that the oil sector contributed more than 86 billion GHS to Ghana's GDP, an average of about 8 percent per year between 2013 and 2018.

These successes, he explained, have been achieved despite the many challenges facing the oil industry. Among the challenges he listed were: smuggling via unapproved offshore roads, spilling of gas oil declared for sale to foreign vessels at local service stations, underreporting and non-compliance. declaration of products raised in depots; diversion of subsidized social products such as premixed fuel, fraudulent cargo claims from certain carriers and BRVS LPG siphoning into surface tanks in illegal LPG tanks ".

These "harmful activities," he added, have cost Ghana about "about $ 200 million a year in tax revenue, compromising the quality of products at service stations because of a laundry that damages the engines. vehicles and distortion of national consumption statistics (more than 300,000 Mt of actual annual consumption was not reported).

He also said that "the Unified Petroleum Price Fund (UPPF) had also recorded losses of about $ 12 million a year".

Addressing the stated problems, Mr. Tampuli said the NPA had "put in place a series of measures to address the problem, in collaboration with the Ghana Revenue Authority, the Ghanaian Navy and other security agencies". in the country ", and intensified its activities. "Digital solutions such as the company relational database management software, the petroleum product marking system and the bulk road vehicle tracking project".

Mr Tampuli urged "the participants to use this GHIPCON platform to deliberate on the key issues" of the oil industry, putting "emphasis on the" necessary "strategies in order to realize their vision of A "catalyst for transformation" "with this year's theme.

He also badured participants that "the main recommendations" of the conference "will be taken into account in efforts to ensure the efficiency of the oil industry downstream of Ghana".

Vice President Mahamudu Bawumia, for his part, said the downstream petroleum sector has expanded significantly as a result of the government's policy of deregulation.

"This sector has seen significant investment and expansion of petroleum storage and sale facilities," he said.

"The investment was sponsored by the private sector, which is predominantly dominated by a growing number of indigenous Ghanaian businesses.

"For example, over the past eight years, the industry has grown from eight (8) bulk distribution companies (BDCs) to 35. The number of petroleum marketing companies (OMCs) has grown from eight to eight (81). ) to one hundred and fifteen (115) ".

Mr. Bawumia also mentioned that in May 2019, 19 companies were providing support services to the sector in areas such as tank calibration, underground storage (UST) and tank cleaning. (AST), non-destructive testing (NDT), among others.

Deputy Minister of Energy, Amin Adam, said the government, through the Ministry of Energy and the NPA, was taking steps to transform the oil sector downstream from its state current "in order to make Ghana a hub of refined petroleum products in West Africa. Region."