The Acting Chief Executive Officer of the National Petroleum Authority (NPA), Edudzi Tamakloe, has taken office during a pivotal period characterized by the imminent risk of fuel shortages.
His primary focus is to ensure the availability of fuel across the nation, as fluctuations in fuel prices have a considerable effect on both businesses and the overall economy.
In response to logistical issues that have hindered petrol distribution, particularly in the Northern regions, the NPA has implemented several measures.
These initiatives include allowing Oil Marketing Companies (OMCs) to obtain special authorization to load petrol from the Bulk Energy Storage and Transportation Company (BOST) depot located in Kumasi, facilitating supply to the five northern regions.
At the same time, the escalating fuel prices, with petrol and diesel approaching GH₵16 per litre, present an additional challenge, as concerns regarding affordability among the public and businesses continue to rise.
It remains to be seen whether the acting NPA leader will collaborate with the government to introduce strategies such as suspending specific margins on petroleum products, a method previously employed to alleviate price increases.
Industry stakeholders, including the Africa Centre for Energy Policy (ACEP), have expressed apprehensions regarding the levies and margins applied to petroleum products.
Kodzo Yaotse, the Policy Lead for Petroleum and Conventional Energy at ACEP, has criticized certain margins as harmful to consumers.
The intention is to prevent the NPA from receiving any margins. We propose that these margins be transformed into tax handles under government control, ensuring that the resulting revenues are allocated for developmental initiatives. The NPA is already compensated for its responsibilities, as the cost of the product includes funds for its operations, he remarked.
He further stressed: “We do not wish for the NPA to engage in the collection of funds for transportation or any other product-related purposes. Its primary focus should be on guaranteeing an adequate supply of the product within the country and ensuring its quality.”
Another significant concern for the acting NPA leader pertains to the 2024 Petroleum Products Pricing Guidelines.
These guidelines establish a minimum price that OMCs must adhere to when selling their products, a policy that has faced criticism from energy sector analysts.
The Chamber of Petroleum Consumers has recommended the implementation of a price ceiling in conjunction with the price floor to achieve a balance between market deregulation and consumer protection.
As Edudzi Tamakloe assumes his position, the way forward will require decisive actions to stabilize supply, tackle pricing issues, and foster confidence in Ghana’s petroleum industry.
