Two civil society organizations are proposing reforms at the National Petroleum Authority (NPA), citing poor transparency in the management of petroleum-related funds.
The Center for Environment Management and Sustainable Energy (CEMSE) and the Revenue Mobilisation Africa (RMA) have jointly called for the decoupling of the NPA’s regulatory and fund management functions.
The organisations argue that the dual role has enabled systemic inefficiencies, opaque accounting practices, and possible misapplication of state funds.
At the center of the concerns are three key revenue streams under the NPA’s control:
Unified Petroleum Price Fund (UPPF): With annual petroleum consumption estimated at five billion liters, the UPPF generates over GHS 4 billion yearly. However, only 40% is transferred to transport operators, with the remaining 60% – an estimated GHS 2 billion remitted to the NPA.
The Auditor-General reported a surplus of GHS 524.7 million in 2023, up from a GHS 131.5 million deficit in 2022. The CSOs argue that the reported surplus underrepresents the fund’s actual performance.
Primary Distribution Margin (PDM): Intended to support inter-depot petroleum distribution, the PDM yields over GHS 1.3 billion annually. With only a fraction of the margin expended on logistics, the rest – some GHS 900 million—is retained without clear reporting or public accountability.
Cylinder Recirculation Margin (CRM): Imposed at $80 per metric ton on LPG, the CRM has accumulated over $30 million since April 2024.
Yet, uptake of cylinder usage remains low, with less than 1% of LPG users participating. Out of more than $10 million collected in 2025, only about $37,000 has been disbursed.
Combined, these funds reportedly generate in excess of GHS 3 billion annually.
The CSOs contend that little of this is transparently accounted for or reinvested into public service delivery.
They are demanding the Ministry of Finance take over fund management responsibilities and for Parliament to initiate amendments to the NPA Act that would restrict the Authority to regulatory oversight only.
The call for reforms follows broader national conversations on public financial management, particularly within state agencies overseeing extractive and energy revenues.
Source: CNR
