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The National Petroleum Authority (NPA) has canceled the operating licenses of five Bulk Petroleum Distribution Companies (BDCs) engaged in the oil refining process in Ghana.
The companies involved include Imperial Energy Limited, Mimshack Energy Limited, LIB Ghana Limited, WI Energy Limited and Rochelle Energy Limited.
In the Authority’s 2019 report, the said companies failed to fulfill their statutory financial responsibilities, which resulted in the revocation of their licenses.
Additionally, the NPA reported that there had been a revision of BDC’s annual license fees from $ 400,000 to $ 300,000 after further discussions between the Administration and the Chamber of Bulk Petroleum 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 says the number of CAEs importing products over 100,000 tonnes increased from seven in 2018 to nine in 2019.
“The 80% market share controlled by the nine BDCs calls into question the commercial viability of the 12 BDCs with imports of less than 50,000 mt, given their operating expenses and an annual license fee of 400 000 US $ ”, added the Authority.
Meanwhile, there has been a 7 percent growth resulting from an increase in the number of petroleum marketing companies (OMCs).
In 2019, 120 companies were in activity, compared to 112 declared in 2018.
The number of outlets operated by the WTO also increased from 2,944 to 3,055 in 2019.
The National Petroleum Authority is an institution created by an Act of Parliament (NPA Act 2005, ACT 691) to regulate the downstream 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 get their money’s worth.
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