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The Minister of Energy and Green Transition, John Abu Jinapor, has said that the review of the National Petroleum Bill, 2024, will enhance the regulatory framework of the petroleum downstream industry and position it to thrive in a competitive and sustainable environment.
He said the reviewed bill was not only about strengthening regulation but also about ensuring that the downstream sector aligned with the nation’s energy transition agenda.
The minister added that the revised Act must take into consideration the integration of cleaner and alternative fuels, including mechanisms that encourage private investment in low-carbon solutions.
Mr Jinapor was speaking in Accra yesterday at a joint stakeholder engagement put together by the ministry and the National Petroleum Authority (NPA) to discuss inputs received on the draft National Petroleum Bill 2024.
"The review of the Act has come at a crucial moment where there are heightened global calls for energy sustainability and security.
“We must, therefore, enhance the regulatory framework of the petroleum downstream industry and position it to thrive in a competitive and sustainable environment,” he said.
The bill aims to establish the NPA, amend and consolidate the laws relating to the petroleum downstream industry.
It re-enacts the NPA Act, 2005 (Act 691) with multiple amendments and several novel stipulations that were pertinent to the changing trends and dynamics in the petroleum downstream industry.
The purpose of the re-enactment is, therefore, to re-establish the NPA and institute a more robust regulatory and governance framework for the country's deregulated petroleum downstream industry.
The NPA Act, 2005 (Act 691) was enacted some 18 years ago to regulate, oversee and monitor activities in the petroleum downstream industry and also to establish a Unified Petroleum Price Fund.
The event brought together participants from the downstream petroleum industry, including the Tema Oil Refinery, the Ghana Cylinder Manufacturing Company, the Africa Centre for Energy Policy (ACEP), the Ghana Chamber of Bulk Oil Distribution (CBOD), the Chamber of Oil Marketing Companies (COMAC), the Tanker Owners Union, the Institute of Energy Security and the LPG Marketing Companies Association of Ghana, and sister regulatory agencies.
Notable among the participants were the Deputy Minister of Energy and Green Transition, Richard Gyan-Mensah, the Managing Director of the Bulk Oil Storage and Transportation Company Ltd (BOST), Afetsi Awoonor, a former Minister of Power, Dr Kwabena Donkor, the CEO of Environmental Protection Authority, Professor Nana Ama Brown Klutse, the Managing Director of Ghana Bunkering Services, Jude Sekley, the CEO of CBOD, Dr Patrick Ofori, and the CEO of COMAC, Dr Riverson Oppong.
Mr Jinapor, who is also Member of Parliament (MP) for Yapei-Kusawgu, said the forum demonstrated the government’s commitment to transparency, reforms and inclusiveness as the country moved towards a more robust and efficient petroleum downstream sector.
He added that the existing Act 691 which was enacted in 2005, had provided the foundation for many of the gains made right from price deregulation to improved liquified petroleum gas (LPG) distribution and the promotion of fair competition in the sector.
However, access to private participation also meant a very rapid growth of the petroleum downstream industry.
"We will all agree that the petroleum downstream industry is dynamic and keeps metamorphosing, but this growth has not been matched by the regulatory tools that Act 691 accords the Authority," Mr Jinapor said.
For his part, Chief Executive of NPA, Godwin Kudzo Tameklo, emphasised the need to review and update the National Petroleum Authority Act of 2005 (Act 691), which was now 20 years old.
He said the petroleum industry evolved faster than regulation, with new developments emerging constantly that required review.
Mr Tameklo encouraged the experts and stakeholders to assess the past, understand current challenges, and shape the future of the NPA for the next 20 years.
"Today, we have the finest minds you can think of in the petroleum downstream – industry experts, practitioners, among others – to help us shape maybe another 20 years of the life of the NPA," he said.
The bill had undergone extensive consultation through committees that included representatives from all key stakeholders, aimed at gathering suggestions and feedback to strengthen its provisions.
Following the review process, the bill is expected to be submitted to Cabinet and subsequently to Parliament for final assessment and adoption.
