Ghana seeks to update petroleum law

Ghana’s National Petroleum Authority (NPA) is seeking to revise the legal framework that has governed the downstream petroleum sector since 2005. The NPA, which regulates the sale and distribution of petroleum products in the country, argues that the current law needs updating to reflect changes in the market and the sector’s role in the economy.

NPA director calls for complete revision

During a meeting with the Public Accounts Committee of the Ghanaian Parliament on October 21, Godwin Edudzi Tameklo, the NPA director general, called for a complete amendment of the National Petroleum Authority Act, 2005 (Act 691). He emphasized that the law, now over two decades old, must be adapted to current market conditions and evolving challenges.

Updating the Unified Petroleum Price Fund

Tameklo mentioned that a new bill to amend the legal framework will soon be submitted to Parliament. The proposed changes aim to adjust the Unified Petroleum Price Fund (UPPF), which is responsible for equalizing fuel prices across different regions of Ghana. This mechanism helps maintain a consistent fuel price nationwide by accounting for transportation costs.

Fuel price equalization mechanism

The UPPF, established by the 2005 law, ensures that fuel prices remain uniform across the country by compensating for the varying transportation costs of petroleum products. This system involves significant financial flows, with the Auditor General reporting revenues of 13.22 billion cedis and expenditures of 11.17 billion cedis between January 2023 and February 2026.

Challenges in fuel distribution

Tameklo highlighted the challenges of fuel distribution in northern Ghana, where longer transportation distances can impact fuel availability and pricing. He emphasized the need for regulations to address both primary and secondary distribution circuits, ensuring efficient and fair fuel distribution nationwide.

Concerns over unmarked fuel sales

In a June 2026 report, the Auditor General noted that approximately 87.4 million liters of gasoline sold without proper marking in 2025 could have exposed the UPPF to a potential loss of 78.65 million cedis. This underscores the importance of updating regulations to prevent financial losses and ensure transparency in the petroleum sector.