The National Petroleum Authority (NPA) has confirmed that the planned introduction of new sulphur levels for diesel would result in some marginal price hike.

The Authority from July 1 would start implementing new standards of 50 Parts Per Million (PPM), instead of the current 5000 to 3000 PPM levels in petroleum products in the country.

The 50 PPM are said to have lower sulphur levels that are less harmful to the health of human beings, the engines of vehicles, and even the environment.

In a response to questions sent to the Authority, the regulator noted that implementation of the new sulphur levels would result in some marginal price hike, “it’s less than one percent, and mind you, prices have fallen by three percent.” 

The NPA in the statement also said it is going to ensure that new standards for importers have complied with the directive.

However, the NPA noted that “we have some old stocks of the 3000 ppm already in the system and there is a phase out period of three months within which the NPA, would keenly monitor existing stocks at the depots to ensure we gradually meet the 50 ppm”.

After the phase out period, "we will monitor the sulphur levels at the pumps and non-complaint PSP will heavily be sanctioned including the withdrawal of their license” the NPA said.

Earlier concerns raised by NPA on TOR

The National Petroleum Authority, last year noted that since the infrastructure of  Tema Oil Refinery (TOT) needs to reconfigure, the state refinery and there might be the need for some capital injection of $300 million.

According to the Authority added that TOR would need a three year grace period to meet this new standards.

Benefits of the new sulphur levels

It is estimated that reduction of sulphur content in petroleum products has enormous benefit on the economy, environment and health of the population.

Some analysts have argued that even though it might be expensive to bring in these products, it may have some positive impact of the vehicles of consumers as it may prolong the lifespan of their engines.

The reduction will help the country meet the international agreed standards and goals. Ghana in 2005 signed onto the Dakar Declaration of clean Air initiative which eliminated lead from fuels in Ghana in 2005, Paris Agreement on Climate Change, all these agreement were aid at reducing very high chemicals in the all these products which is seen as injurious to the environment.