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Introduction
Between 2015 and 2019, illegal activities in Ghana’s petroleum sector, such as unauthorised third-party deliveries, fake receipts, and smuggling, resulted in an estimated government tax revenue loss of approximately GH¢4.7 billion. The National Petroleum Authority (NPA) is the body responsible for regulating this sector, which generated over GH¢71 billion in 2023 alone. A performance audit covering January 2023 to April 2026 identified significant regulatory weaknesses that continue to expose the state to financial and quality-related risks. The full report of the audit conducted by the Auditor General’s Department can be found here.
Regulatory Weaknesses
- Transportation and Tracking Failures
According to Section 11(1) of the NPA Act, 2005 (Act 691), a person shall not engage in business or commercial activity in the downstream industry unless that person has been granted a license for that purpose by the Board. This section requires the National Petroleum Authority (NPA) to issue a license to Bulk Road Vehicle (BRV) operators for the transportation of petroleum products. The audit, however, found that the NPA did not adequately enforce the licensing and tracking systems designed to secure fuel in transit by the BRV. The audit found that
- Unlicensed Vehicles: As of April 2026, only 51.3% (2,514 out of 4,904) of Bulk Road Vehicles (BRVs) held valid licenses. Operating without a license means there is no assurance these vehicles meet safety or quality standards. The audit found that the licenses of the BVRs expired on December 31, 2025. However, the NPA gave them until March 31 to renew, but that has not been done.
- Lack of Tracking for Key Products: The NPA failed to track approximately 48,678 delivery trips between 2023 and 2025. This occurred primarily because the Authority did not track Aviation Turbine Kerosene (ATK) or Naphtha, claiming they did not attract UPPF margins, even though the law requires tracking all petroleum products. Tracking the delivery of ATK was important for ensuring the supply of quality fuel to the Aviation Industry was important for securing the safety of the air. The Unified Petroleum Price Fund (UPPF) margin is used to support the transportation of petroleum products around the country to ensure that the price of the product is evenly distributed in every part of the country regardless of location. But the audit report revealed that there was no directive for the NPA not to receive margins from ATK.
- Fuel Diversion: These tracking gaps led to the detection of 582 instances of diversion, involving over 9.7 million litres of petrol and diesel in 2024 and 2025.
2. Discrepancies in Product Marking
Product marking involves adding a chemical marker to fuel to detect adulteration and ensure tax compliance. The audit identified major inconsistencies in this process: Regulation 1 of the NPA Petroleum Product Marking Regulations, 2012 (L.I. 2187), provides details on how this needs to be done.
- Unmarked Petrol: Approximately 87 million litres of petrol were distributed without being marked between 2023 and 2025. This created a significant risk of products being sold on the black market without appropriate state taxes being paid.
- Marked but Not Distributed: Conversely, the NPA paid for the marking of 638,500 litres of petrol that were never actually distributed.
- Financial Impact: These discrepancies resulted in a loss of approximately GH¢78.6 million to the Uniform Petroleum Pricing Fund (UPPF) in 2025.
3. Monitoring Breakdowns at Retail Outlets
The NPA uses Automatic Tank Gauging Systems (ATGS) to remotely monitor fuel levels, temperature, and the presence of water in underground storage tanks at filling stations.
- Installation Gaps: While the goal was to install ATGS at 4,000 outlets, 557 remained outstanding by March 2026 due to poor infrastructure at some stations.
- Non-Functional Systems: Of the outlets that did have the systems, 48% were non-functional due to breakdowns or power issues.
- Quality Issues: Because these systems were often broken, they failed to detect water contamination. In one instance, a station passed a manual test but was later found to have 180 litres of water in its tank following consumer complaints.
- Unverified Payments: The NPA paid the service provider (RASL) GH¢648.62 million for installation and maintenance without independently verifying that the actual maintenance work had been performed.
Management response and recommendations
Management acknowledged these findings and has begun deactivating unlicensed vehicles from the electronic database. They have also committed to bringing ATK under the tracking framework by the end of 2026.
Conclusion
While the NPA has implemented various regulatory activities to ensure the quality of petroleum products at retail outlets, significant operational challenges persist in the areas of distribution, product marking, and monitoring. These failures have direct implications for public safety, product integrity, and national revenue. Because of these systemic weaknesses, the state has no absolute assurance that all petroleum products sold to consumers are of the desired quality. Furthermore, these gaps facilitate illegal activities that result in substantial losses in tax revenue to the state.
