NPA's Electronic Cargo Tracking System will curb illicit activities in the petroleum sector - Tampuli

The Chief Executive Officer of the National Petroleum Authority, Mr Alhassan Tampuli says he is confident that the introduction of the command centre for the bulk road vehicle & electronic cargo tracking system will go a long way to curb the incessant illicit activities in the downstream petroleum sector.

Speaking at the official commissioning of the command centre at the NPA’s head office in Accra on Tuesday, January 14, Mr Alhassan Tampuli said this new innovation is the sort of game-changer which will sanitize the sector, increase revenue for the state and improve standards for all stakeholders.

In Ghana, the dominant mode of petroleum product transportation is by road using Bulk Road Vehicles. Currently, about 98% of the volume of petroleum products moved within the country are done using BRVs.

This mode of transportation is however associated with many challenges including transit product shortages and false haulage claims.

Addressing stakeholders at the event commission Mr Tampuli revealed that due to the absence of an effective tracking system, transport service providers exploited the lack of capacity of the NPA to independently confirm the delivery of petroleum products to retail outlets, thereby subjecting the Petroleum Fund to abuse by presenting false claims for costs incurred for the transportation of petroleum products.

To address the challenge, he said, the NPA opted for a technological approach that would enable it to have visibility on the movement of bulk road vehicles and the locations where petroleum products were loaded, hence the introduction of the tracking system.

“The introduction of the BRV Tracking and Cargo Tracking Systems is a demonstration of our commitment to improving standards and controls in the distribution of petroleum products in the country.

“There is no doubt that all sectors of the economy stand to benefit from an efficiently managed downstream oil sector that delivers petroleum products in the right quantity and, the required quality at least cost at all times.

“Adequate controls and reliable distribution service for the petroleum downstream sector is very essential for economic development and this sits well with the NPA’s vision which is to be a catalyst for economic transformation and growth” he added.

The event was graced by the Vice President of Ghana, Dr Bawumia who praised

and commended the NPA and its stakeholder agencies for their efforts at improving operational standards and efficiency in the petroleum downstream industry, adding that energy was critical to the survival of mankind and, therefore, its sustainability had become a very important and burning issue around the globe.

The petroleum downstream sector, according to him, was a critical component in meeting the energy requirements of the country, since an efficient and effective petroleum products distribution system was important and essential to the economic growth of the country.

About the NPA

The NPA was established by an Act of Parliament (NPA Act 2005, ACT 691) to regulate the petroleum downstream industry in Ghana. As a Regulator, the Authority has endeavoured to ensure that the industry remains efficient, profitable and fair while ensuring that consumers receive value for money.

Since the establishment of the NPA in 2005, the Authority has supervised the acceleration of the petroleum downstream deregulation process by facilitating the removal of restrictions on the establishment and operations of facilities, and importation of crude oil and petroleum products.

In June 2015, the NPA successfully implemented the final phase of the deregulation process, which is price liberalization. This process involves full decontrol of prices of petroleum products from the government, private importers, distributors and retailers are empowered to set ex-refinery and ex-pump prices with no intervention from the government.