National Petroleum Authority (NPA) has cited another company, Glencore Oil for operating without a license in Ghana’s petroleum downstream industry.
The NPA, in a letter cited by Citi News, has threatened legal action if Glencore Oil does not cease its operations.
Glencore is said to have been importing petroleum products for storage and sale to various customers within Ghana, thus flouting section 11 of the National Petroleum Authority Act, ACT 691, 2005.
“We wish to advise that the importation of petroleum products into the country is carried out only by companies duly licensed by the Authorities (i.e. Bulk Distribution Companies and Oil Trading Companies),” the letter from the NPA stated.
“On the basis of the above, you are hereby advised to suspend any such activities with immediate effect, failing which the Authority will have no choice but to take necessary legal action against your company.”
This comes after the controversy over the involvement of two unregistered companies, Zup Oil and Movenpinaa Energy, which were involved in the sale of contaminated oil.
Those companies were found to be operating without a license and the NPA indicated that they would face sanctions.
The NPA, also said it would take legal action against the firms and conduct further investigation to determine the actual quantity and quality of contaminated oil received.
“There is a standard sanction that we impose on such petroleum service providers who do not have licenses to operate. What we do is to enforce these sanctions which are known to everybody in the industry. For every trivial activity that they engage in, they pay GHc10,500,” the NPA acting Chief Executive Officer explained.
Zup Oil and Movenpinaa Energy will, however, be given the opportunity to regularise their operations.
The contaminated fuel story was brought to the fore by a Citi News report, indicating that Ghana lost about GHc 7 million in revenue following attempts by BOST to sell the fuel.
By: Delali Adogla-Bessa/citifmonline.com/Ghana
Published on 9 August 2017 | 12:21 pm at Source