The government has announced sweeping reforms to tighten controls over the distribution of refined petroleum products, as it moves to tackle fuel smuggling, prevent revenue leakages and strengthen compliance in the downstream petroleum sector.

Presenting the 2026 Mid-Year Budget Review in Parliament, Finance Minister Dr. Cassiel Ato Forson warned that existing weaknesses in the fuel distribution chain continue to undermine government revenue.

"Consequently, [petroleum products] become vulnerable to diversion, under-declaration and smuggling. This economy can no longer afford these leakages."

To address the challenge, Dr. Forson announced that government will begin enforcing the statutory requirement for a bank guarantee before companies are allowed to lift refined petroleum products.

"Government will therefore enforce the statutory requirement for bank guarantee on the lifting of refined petroleum product."

He added that the transportation of petroleum products will be restricted to approved infrastructure and monitored through technology to improve accountability across the supply chain.

"Government will require product movement to be undertaken only through approved pipelines and electronically tracked distribution system."

The Finance Minister also announced the removal of tax exemptions on bunkering services, arguing that the current regime creates opportunities for abuse and revenue losses.

"Government will also remove the tax exemption on bunkering services, in line with international practice, to curb smuggling, strengthen compliance and protect much-needed revenue."

The new measures form part of government's broader strategy to plug revenue leakages, improve oversight in the petroleum sector and bolster domestic revenue mobilisation as outlined in the 2026 Mid-Year Budget Review.

The reforms are expected to strengthen transparency in the movement of petroleum products while safeguarding government revenue through stricter monitoring and enhanced regulatory enforcement.`