NPA warns of closure and decommissioning of unlicensed fuel stations

The National Petroleum Authority (NPA) has warned that fuel stations operating without the legally required license risks immediate closure and possible decommissioning.

In a statement, the NPA underscored its legal mandate under the National Petroleum Authority Act, 2005 (Act 691), as amended, to regulate all commercial activities involving the storage, distribution and sale of petroleum products.

The is to curb illicit operations and reinforce regulatory compliance in the downstream petroleum industry.

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“Reference is made to Section 11 of the National Petroleum Authority Act, 2005 (Act 691) as amended. (1) A person shall NOT engage in a business or commercial activity in the petroleum downstream industry UNLESS that person has been granted a license for that purpose by the (NPA) Board. (2) The business or commercial activities of the downstream industry in respect of crude oil, gasoline, diesel, liquefied petroleum gas, kerosene and other designated petroleum products include (a) Importation; (b) Exportation; (c) Re-exportation; (d) Shipment; (e) Transportation; (f)Processing: (g) Refining (h) Storage; (i) Distribution; (j) Marketing, and (k) Sale,” part of the statement read.

The NPA also indicated that under the Act, only Ghanaians or foreign companies in registered joint ventures with Ghanaian partners meeting local content and participation requirements are eligible for licenses.

Licensed operators are also required to display their permits prominently at their business premises.

“Section 12 of Act 691 as amended states that “A license under this Act may only be granted to (a) a Ghanaian, or (b) a foreign company in a registered joint venture relationship with a Ghanaian in accordance with the Ghanaian content and Ghanaian participation requirements. The Act also states that a license issued under this Act shall be conspicuously exhibited by the licensee in a prominent place on the business premises,” the statement added.

The enforcement is crucial for ensuring safety, consumer protection, and maintaining confidence in Ghana’s regulated petroleum supply chain, especially at a time of rising energy demand and market expansion.