Ghana’s petroleum downstream sector has experienced 15 percent surge in consumption during 2018 under review. That was attributed to efforts towards curbing illicit fuel activities coupled with deliberate technology based schemes and policy initiatives aimed at propelling private sector growth.
Consumption grew by “15 percent from 3.4 million Mt in 2017 to 3.9 million Mt in 2018. The petroleum sector contributed over GH¢86 billion to Ghana’s GDP representing an average of about 8 percent per annum in the period 2013 to 2018,” said Hassan Tampuli, Chief Executive Officer of the National Petroleum Authority (NPA), adding that despite the successes, there are still challenges plaguing the sector.
Some of the challenges include smuggling via unapproved offshore routes, dumping of Gasoil declared for sale to foreign vessels at local filling stations, under-declaration and non-declaration of products lifted at depots; diversion of subsidized social products such as premix fuel, as well as fraudulent freight claims from transporters and siphoning LPG from BRVS into surface tanks at illegal LPG tank.
He stated that these nefarious activities cost Ghana about $200million per annum of tax revenue; compromising product quality at filling stations due to laundering, which leads to damage to vehicle engines; and distortion of the national consumption statistics with over 300,000Mt of actual annual consumption was unreported.
He indicated that the “Unified Petroleum Price Fund (UPPF) also recorded about $12million losses per annum.”
The NPA has since rolled out series of measures to tackle the problem head-on, in collaboration with the Ghana Revenue Authority, Ghana Navy and other relevant security agencies in the country.
“We have also intensified digital solutions such as Enterprise Relational Database Management Software, Petroleum Products Marking Scheme and Bulk Road Vehicle Tracking project.”
