The regulator also warned that Sentuo's refinery licence could be at risk
The National Petroleum Authority (NPA) has ordered Sentuo Oil Refinery Limited to immediately stop what it describes as unfair arrangements requiring licensed petroleum service providers to transact through a designated intermediary to access the refinery’s products.
In a notice dated August 18, 2026, the NPA said it had observed with “grave concern” that licensed Bulk Import, Distribution and Export Companies (BIDECs) seeking to procure petroleum products from Sentuo were, in several instances, effectively compelled to transact through a particular intermediary.
The Authority said it had also received reports that the intermediary had repeatedly failed to honour its contractual obligations to licensed petroleum service providers, resulting in non-delivery and disruptions to legitimate downstream petroleum trading activities.
“The Authority finds this practice unacceptable,” the NPA stated.
The regulator said the arrangement was inconsistent with the standards of fair, transparent and non-discriminatory commercial conduct expected of a licensed refinery.
The NPA cited Section 24 of the National Petroleum Authority Act, 2005 (Act 691), which provides for the sale of refinery products without discrimination to bulk customers and licensed petroleum marketers.
It also referred to Section 40 of the Act, which requires fair and equitable commercial practices and the monitoring of relationships among petroleum service providers to support the enforcement of existing contracts.
According to the Authority, restricting access to refinery products through a particular intermediary, especially where the intermediary fails to honour contractual commitments, raises concerns about compliance with these requirements.
The NPA has therefore directed Sentuo to “immediately cease and desist from any practice” that requires, compels or effectively makes licensed petroleum service providers dependent on a particular intermediary as a condition for accessing petroleum products from the refinery.
The Authority has further instructed Sentuo to put in place immediate arrangements that provide licensed petroleum service providers with fair and transparent access to its products.
The regulator also warned that Sentuo’s refinery licence could be at risk if the concerns are not satisfactorily addressed.
The NPA drew Sentuo’s attention to Section 18 of Act 691, under which the Board may suspend, revoke or refuse to renew a licence for non-compliance with the Act, regulations or conditions of the licence, among other grounds.
“In view of the seriousness and recurrence of these concerns, the Authority is presently considering whether Sentuo remains fit to continue operating under its refinery licence,” the notice stated.
Sentuo has since been given seven working days from the date of the notice to respond.
The company is required to confirm that the practice complained of has ceased, outline measures implemented to ensure direct, fair and non-discriminatory access to its products, and show cause why proceedings should not be initiated for the suspension or revocation of its refinery licence under Sections 18 and 19 of Act 691.
The NPA warned that failure to provide a satisfactory response and immediately regularise the situation would leave it with “no alternative but to consider the appropriate regulatory action available.”
The Authority however advised Sentuo to treat the matter as urgent.
MA
Copyright © 1994 - 2026 GhanaWeb. All rights reserved.
