The National Petroleum Authority (NPA) is sounding the alarm over the inadequate penalties for establishing unauthorised fuel stations, pushing for a legislative review to introduce significantly stiffer fines.

The authority contends that the current fines, pegged at less than GH₵ 20,000, fail to deter illegal operations, posing grave risks to public safety.

Chief Executive Officer of the NPA, Godwin Edudzi Tamakloe, voiced the urgent need for more stringent measures during a recent engagement with Parliament’s Energy Committee.

He highlighted the escalating proliferation of unlicensed fuel outlets, some of which have been directly linked to fatal explosions.

"If the penalties are punitive enough, it will discourage those unscrupulous people from setting up filling stations in unauthorised places," Mr. Tamakloe asserted.

He drew a grim reminder of past tragedies, stating, "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 reference to "Haatso" likely alludes to the October 2017 Atomic Junction gas explosion, which occurred near Haatso in Accra and resulted in at least seven fatalities and 132 injuries, underscoring the devastating consequences of lax regulation and adherence to safety protocols.

This incident, among others, prompted widespread calls for a review of safety standards in Ghana's petroleum downstream sector.

The NPA, established under the National Petroleum Authority Act, 2005 (Act 691), is mandated to regulate, oversee, and monitor activities in the petroleum downstream industry.

Despite this mandate, the existing penalty structure for constructing or operating an unauthorised facility, outlined in the NPA's disciplinary guidelines, falls significantly short of addressing the potential economic and human costs of such infractions.

For instance, while failing to obtain authorisation to construct a retail outlet attracts a fine of "5 times construction permit fee," and selling adulterated products carries a fine not exceeding GH₵ 20,000, these amounts are seen as insufficient deterrents for operators who might earn substantial profits from illicit fuel sales.

The CEO reaffirmed the NPA’s unwavering commitment to tightening the enforcement of safety regulations and actively curbing the establishment of illegal fuel stations nationwide.

Industry experts suggest that a review could see fines increased by as much as 500% or more, coupled with potential custodial sentences, to truly reflect the severity of the offence and the risks involved.

The illegal petroleum business is estimated to cost Ghana significant tax revenue annually, with reports from 2017 indicating losses of around GH₵ 850 million due to smuggling and unapproved sales.

The NPA’s call for legislative action reflects a growing concern about public safety and economic integrity in Ghana’s petroleum sector, pushing Parliament to consider amendments that would equip the Authority with the necessary tools to effectively combat the pervasive issue of illegal fuel stations.