The National Petroleum Authority (NPA) has rescinded the operating licenses of some five Bulk Oil Distribution Companies (BDCs) engaged in Ghana's petroleum refinery process.
The affected companies, include Imperial Energy Limited, Mimshack Energy Limited, L.I.B Ghana Limited, WI Energy Limited and Rochelle Energy Limited.
In the Authority's 2019 report, the said companies failed to execute their financial responsibilities enshrined in the law, resulting in the revocation of their licences.
Also, the NPA indicated that there was a revision of the annual BDC licence fee from $ 400,000 to $300,000 after further discussions between the Authority and the Chamber of Bulk Oil Distribution companies (CBOD).
According to the National Petroleum Authority's latest update, the concentration of market activity in the sector, remains unchanged despite an increase in operating companies.
The report stated that the number of BDCs that imported products above 100,000mt increased from seven in 2018 to nine in 2019.
"The 80 percent market share controlled by the nine BDCs brings into question the commercial viability of the 12 BDCs whose imports were below 50,000mt, given their operating expenses and an annual licence fee of US$ 400,000," the Authority added.
Meanwhile, there has been a 7 per cent growth resulting from an increase in the number of Oil Marketing Companies (OMCs).
In 2019, there were 120 companies in operation as compared to 112 reported in 2018.
The number of retail outlets operated by the OMCs has also increased from 2,944 to 3,055 in 2019.
The National Petroleum Authority is an institution established by an Act of Parliament (NPA Act 2005, ACT 691) to regulate the petroleum downstream industry in Ghana.
Again, the Authority as a regulator ensures that the industry remains efficient, profitable, fair, and at the same time ensures that consumers receive value for money.