NPA Bemoans High Escalation of Unapproved Fuel Stations, Proposes Tough Sanctions to Curb Menace

The National Petroleum Authority (NPA) is expressing deep concern over a rise in unauthorised fuel stations across the country, warning that the proliferation poses a serious threat to public safety and undermines the integrity of Ghana’s petroleum sector.

NPA says there is an increasing number of unauthorized fuel outlets springing up at unapproved places, posing a danger to people and other businesses.

The Chief Executive Officer (CEO) of the Authority, Godwin Edudzi Tamakloe, who was briefing the Energy Committee of Parliament, noted that many of these illegal stations operate in densely populated areas, with little regard for safety standards.

This situation, he says, has resulted in deadly explosions and widespread panic in the past, citing the Haatso Atomic incident in 2017 as an example.

Edudzi Tamakloe has observed that one of the key drivers behind the surge in unauthorised fuel outlets is the leniency of existing penalties. He pointed out that some infractions attract fines as low as GH₵ 20,000. Such a sanction, he argues, is grossly inadequate to deter operators who stand to gain far more in illicit profits.

Currently, the NPA’s disciplinary framework imposes fines such as “five times the construction permit fee” for building retail outlets without approval. However, the CEO believes this falls short of addressing the scale of risk and economic loss posed by illegal fuel activities.

To address the situation, the CEO is proposing tougher and stiffer sanctions that can deter culprits. The Authority is therefore calling for an immediate legislative overhaul that introduces deterrent sanctions and deepens the mandate of the NPA to clamp down on unlicensed operators/

Edudzi Tamakloe says the menace is not just a regulatory breach but also is a dangerous trend that endangers lives and property, and hence cannot be treated with kid gloves.

“If the penalties are punitive enough, it will discourage those unscrupulous people from setting up filling stations in unauthorised places. We all remember the event that happened at Haatso and the panic it set in the whole system. We are trying so well to make sure that we minimise those incidents,” the NPA CEO told the Committee.

Beyond the threat to other businesses and public safety concerns,  reports have also revealed that the illegal petroleum trade is taking a toll on national revenue. Estimates from 2017 revealed that the state lost close to GH₵ 850 million due to fuel smuggling and unapproved sales, deepening the calls for drastic and urgent reforms in the sector.  

Will parliament respond to this surging concern with a legislative amendment? Only time will tell, but for now, all eyes are on lawmakers to respond to what many see as a ticking time bomb in the nation’s fuel distribution network.

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