Executive Director of the Centre for Environmental Management and Sustainable Energy (CEMSE) Benjamin Nsiah is advocating for drastic reforms to address the inefficiencies plaguing the petroleum downstream sector and ensure proper regulation and oversight.
According to him, Ghana suffers a staggering $600 million in annual losses due to regulatory inefficiencies
Too many players, too little regulation
Nsiah highlighted the overcrowded nature of the sector, emphasizing that Ghana’s market is too small to accommodate the high number of oil marketing companies (OMCs) and filling stations.
He compared Ghana’s situation with similar economies on the gcontinent, pointing out that neighboring countries with comparable vehicle populations operate with far fewer OMCs.
“Our neighbor Ivory Coast has fewer than 100 filling stations, whereas Ghana has nearly 2,000. This makes regulatory enforcement incredibly difficult,” Nsiah stressed.
He further criticized the National Petroleum Authority (NPA) for allowing some OMCs that neither lift nor sell oil products to continue operating.
“Where do they get their products from?” he questioned, raising concerns about illegal fuel sourcing and market manipulation.
Regulatory oversight weakened by market size
Nsiah pointed out that the artificially large number of players in the sector has weakened regulatory oversight, making it difficult for authorities to effectively monitor activities and generate adequate revenue.
He urged the NPA to rationalize the number of OMCs and filling stations to ensure a more manageable and efficient system.
“The sheer volume of filling stations makes it impossible for regulators to police all operators effectively,” he said. This, he argued, not only reduces compliance with safety and environmental standards but also facilitates revenue leakages that cost the economy millions.
Call for immediate reforms
Nsiah urged the newly appointed CEO of the NPA, Godwin Edudzi Tameklo, to take decisive action by streamlining the sector and implementing Environmental Social Governance (ESG) principles. He stressed that without urgent reforms, the downstream petroleum sector risks long-term instability, affecting both economic growth and environmental sustainability.
“The future of the sector depends on strong leadership and bold reforms. It is time for the NPA to act decisively,” Nsiah said
By SELORM GBORBIDZI, Accra
