Dr. Mustapha Hamid
The National Petroleum Authority (NPA) has suspended the issuance of new licenses to Bulk Import, Distribution and Export Companies (BIDECs) and Oil Marketing Companies (OMCs).
This was captured in a letter to Bulk Oil Distribution companies and Oil Marketing Companies on 12th September 2022, seen by Joy Business and signed by its Chief Executive, Dr. Mustapha Abdul-Hamid.
Why this action ?
The NPA in the letter maintained that the action taken was as a result of a directive from the Energy Minister, Dr. Matthew Opoku Prempeh as part of a broader strategy to sanitize the industry.
The letter also revealed that the move is to enable the Energy Ministry to undertake what it describes as a comprehensive review of the activities of petroleum service providers in the downstream industry.
The Industry is facing a lot of challenges in recent times which include the inability of some OMCs to meet their tax obligations to the state.
According to the NPA, about 45 OMCs that owe about ₵400 million in levies and margins that has been collected since last year and yet to be paid to the NPA.