National Petroleum Authority Act, 2005 Act 691

NATIONAL PETROLEUM AUTHORITY ACT, 2005 (ACT 691)
As mended by
NATIONAL PETROLEUM AUTHORITY (AMENDMENT) ACT, 2016 (ACT 913)1
RENEWABLE ENERGY ACT, 2011 (ACT 832)2
ARRANGEMENT OF SECTIONS
Section
PART I—THE NATIONAL PETROLEUM AUTHORITY
Establishment and functions of the National Petroleum Authority
1. National Petroleum Authority
2. Object and Functions of the Authority
3. Governing body of the Authority
4. Independence of the Authority
5. Tenure of office of members
6. Meetings of the Board
7. Disclosure of interest
8. Allowances
9. Appointment of Committees
10. Establishment of Committees of the Board
Licences
11. Requirement for licence
12. Qualification for licence
13. Application for licence
14. Conditions of licence
15. Issue and renewal of licence
16. Display of licence
17. Non transferability of licence
18. Revocation, suspension and refusal to renew licence
19. Notice of revocation, suspension or refusal to renew licence
20. Register
21. Removal of names from register
1

ension and refusal to renew licence
19. Notice of revocation, suspension or refusal to renew licence
20. Register
21. Removal of names from register
1

22. Publication of licences
Special requirements and authorisations relating to licences
23. Application
24. Refinery licence
25. Storage depots for petroleum products
26. Operation of storage depots for petroleum products
27. Conditions for licence as operator of storage depots for petroleum products
28. Bulk transportation of petroleum products
29. Petroleum products marketing licence
30. Construction of petroleum products depots
31. Display of prices on dispensing units
32. Prohibition to sell petroleum products
33. Monitoring of stock of petroleum products at strategic storage depots. Powers and functions of petroleum service providers and related institutions
34. Relationship of Authority with other institutions and petroleum service providers
35. Refinery and manufacturing processes
36. Duty to set specifications of fuel products
37. Submission of reports to Board
38. Disclosure of information by Board and submission of reports. Liberalisation of the downstream industry and promotion of fair competition
39. Duties of petroleum service providers
40. Promotion of fair trade practices
41. Promotion of new entrants
42.

ry and promotion of fair competition
39. Duties of petroleum service providers
40. Promotion of fair trade practices
41. Promotion of new entrants
42.

Incentives for free zone developers and enterprises
Monopoly provisions
43. Formation of cartels and monopolies
44. Cartelization
45. Promotion of retail competition
Complaints and settlement of disputes
46. Right of complaint
2

rmation of cartels and monopolies
44. Cartelization
45. Promotion of retail competition
Complaints and settlement of disputes
46. Right of complaint
2

47. Settlement of disputes
Administrative and financial provisions
48. Appointment and responsibility of Chief Executive
49. Appointment of other staff
50. Funds of the Authority
51. Expenses of the Authority
52. Accounts and Audit
53. Annual report and other reports
54. Borrowing powers
Miscellaneous matters, offences and general provisions
55. Procedures for dealing with complaints from consumers
56. Inspectorate
57. Gazette Notices
58. Misapplication of prescribed petroleum pricing formula
59. False statements and withholding material information
60. Obstruction or interference with officers and employees of Authority
61. Other offences
PART II—ESTABLISHMENT OF UNIFIED PETROLEUM PRICE FUND
Establishment and management of the Fund
62. Establishment of the Fund
63. Objects of the Fund
64. Sources of money for the Fund
65. Bank account for the Fund
66. UPPF Management Committee
67. Functions of the UPPF Management Committee
68. Meetings, tenure of office, disclosure and allowances
69. Disbursement from the Fund
70. Operation of the Fund
71. Submission of reports by oil marketing companies
72. Submission of report by UPPF Management Committee
3

t from the Fund
70. Operation of the Fund
71. Submission of reports by oil marketing companies
72. Submission of report by UPPF Management Committee
3

Administrative, Financial and Miscellaneous provisions
73. Administrative expenses of Fund
74. Fund Co-ordinator and functions
75. Exemption
76. Accounts and audit for the Fund
77. Annual report relating to the Fund
78. Penalties for misconduct
79. Offences related to transportation of petroleum products
80. Regulations
81. Interpretation
82. Modification of existing enactments
83. Repeals and consequential amendments
84. Saving and transitional provisions
SCHEDULE
4

81. Interpretation
82. Modification of existing enactments
83. Repeals and consequential amendments
84. Saving and transitional provisions
SCHEDULE
4

ACT 691
REPUBLIC OF GHANA
THE SIX HUNDRED AND NINETY-FIRST
ACT
OF THE PALIAMENT OF THE REPUBLIC OF GHANA
ENTITLED
NATIONAL PETROLEUM AUTHORITY ACT, 2005
AN ACT to establish the National Petroleum Authority to regulate, oversee and monitor
activities in the petroleum downstream industry; to establish a Unified Petroleum Price Fund;
and to provide for related purposes. DATE OF ASSENT: 14th June, 2005. ENACTED by the President and Parliament
PART I—THE NATIONAL PETROLEUM AUTHORITY
Establishment and functions of the National Petroleum Authority. Section 1—National Petroleum Authority
(1) There is establishment by this Act, a body to be known as the National Petroleum Authority. (2) The Authority is a body corporate with perpetual succession and a common seal and may
sue and be sued in its corporate name. (3) The Authority may for the performance of its functions acquire and hold movable or
immovable property and may enter into a contract or any other transaction.

hority may for the performance of its functions acquire and hold movable or
immovable property and may enter into a contract or any other transaction.

(4) Where there is hindrance to the acquisition of property, the property may be acquired for
the Authority under the State Property and Contracts Act 1960 (C.A.6) or the State Lands Act,
1962 (Act 125) and the costs shall be borne by the Authority. Section 2—Object and functions of the Authority
(1) The object of the Authority is to regulate, oversee and monitor activities in the petroleum
downstream industry and where applicable do so in pursuance of the prescribed petroleum
pricing formula. 5

see and monitor activities in the petroleum
downstream industry and where applicable do so in pursuance of the prescribed petroleum
pricing formula. 5

(2) To achieve the object, the Authority shall
(a) monitor ceilings on the price of petroleum products in accordance with the prescribed
petroleum pricing formula;
(b) grant licences to applicants under this Act;
(c) maintain a register and keep records and data on licences, petroleum products and
petroleum service providers;
(d) provide guidelines for petroleum marketing operations;
(e) protect the interests of consumers and petroleum service providers;
(f) monitor standards of performance and quality of the provision of petroleum services;
(g) initiate and conduct investigations into standards of quality of petroleum products offered
to consumers;
(h) investigate on a regular basis the operations of petroleum service providers to ensure
conformity with best practice and protocols in the petroleum downstream industry;
(i) promote fair competition amongst petroleum service providers;
(j) conduct studies relating to the economy, efficiency and effectiveness of the petroleum
downstream industry;
(k) collect and compile data on
(i) international and domestic petroleum production, supply and demand,
(ii) inventory of petroleum products, and
(iii) pricing of petroleum products
for the information of the public which the Board considers necessary for the performance of
its functions;
(l) periodically review in consultation with petroleum service providers the prescribed
petroleum pricing formula and publish in the Gazette the respective formula;
(m) publish in the Gazette and in at least two daily newspapers of national circulation and at
the website of the Authority the ex-refinery prices and ex-pump prices of petroleum products
determined by petroleum service providers based on the prescribed petroleum pricing formula
[As substituted by the National Petroleum Authority (Amendment) Act, 2016 (Act 913), s.1]
(ma) establish producer prices for bio-fuel and review these prices periodically; [As inserted
by the Renewable Energy Act, 2011 (Act 832), s.

), s.1]
(ma) establish producer prices for bio-fuel and review these prices periodically; [As inserted
by the Renewable Energy Act, 2011 (Act 832), s.

52 (1)(a)]
(n) monitor daily the import parity price of refined petroleum products and publish the price
periodically in the Gazette;
(o) collaborate with relevant institutions for purposes of this Act;
(p) oversee open and transparent international competitive bidding for the procurement of
petroleum products and crude oil;
6

or purposes of this Act;
(p) oversee open and transparent international competitive bidding for the procurement of
petroleum products and crude oil;
6

(q) approve charges for the provision of petroleum services within the downstream industry;
(r) monitor and evaluate operations of the Fund established under section 62 to ensure the
achievement of the object of the Fund;
(s) approve expenditure charge on the fund under this Act;
(t) publish in the Gazette user fees for monopoly infrastructure; and
(u) perform any other function that is ancillary to the object of the Authority and assigned to it
under this Act. Section 3—Governing body of the Authority
(1) The governing body of the Authority is a Board consisting of
(a) the chairperson,
(b) the Chief Executive,
(c) one representative of the consuming public other than a person specified in paragraphs (d)
and (e),
(d) one representative of the petroleum workers union,
(e) one representative of
(i) the Ghana National Chamber of Commerce, or
(ii) the Ghana Chamber of Mines, and
(f) three persons, at least one of whom is a woman and each of whom has specialised knowledge
and experience in matters relevant to the functions of the Authority. (2) The members of the Board shall be appointed by the President in accordance with article
70 of the Constitution.

to the functions of the Authority. (2) The members of the Board shall be appointed by the President in accordance with article
70 of the Constitution.

Section 4—Independence of the Authority
The Authority shall not in the performance of its functions under this Act, be subject to the
control or direction of any person or authority other than the Minister who may give policy
directions. Section 5—Tenure of office of members
(1) A member of the Board other than the Chief Executive shall hold office for a period not
exceeding four years and is eligible for re-appointment but a member shall not be appointed
for more than two terms in succession. (2) Where a member of the Board resigns, dies, is removed from office or is for a sufficient
reason unable to act as a member, the Minister shall within one month of the occurrence of the
vacancy notify the President of the vacancy and the President shall, acting on the advice of the
nominating authority and in consultation with the Council of State, appoint another person to
hold office for the unexpired portion of the member's term of office. 7

ority and in consultation with the Council of State, appoint another person to
hold office for the unexpired portion of the member's term of office. 7

(3) A member of the Board may at any time resign from office in writing addressed to the
President through the Minister. (4) A member of the Board who is absent from three consecutive meetings of the Board without
sufficient cause ceases to be a member of the Board. (5) The President may by letter addressed to a member revoke the appointment of that member
for just cause and in consultation with the nominating body. Section 6—Meetings of the Board
(1) The Board shall meet at least once every three months for the despatch of business at the
times and in the places determined by the chairperson. (2) The chairperson shall at the request in writing of not less than one-third of the membership
of the Board convene an extraordinary meeting of the Board at the place and time determined
by the chairperson. (3) The quorum at a meeting of the Board is five members. (4) The chairperson shall preside at meetings of the Board and in the absence of the chairperson,
a member of the Board elected by the members present from among their number shall preside.

etings of the Board and in the absence of the chairperson,
a member of the Board elected by the members present from among their number shall preside.

(5) Matters before the Board shall be decided by a majority of the members present and voting
and in the event of an equality of votes, the person presiding shall have a casting vote. (6) The Board may co-opt a person to attend a Board meeting but that person shall not vote on
a matter for decision at the meeting. (7) The proceedings of the Board shall not be invalidated by reason of a vacancy among the
members or a defect in the appointment or qualification of a member. (8) Subject to this section, the Board may determine the procedure for its meetings. Section 7—Disclosure of interest
(1) A member of the Board who has an interest in a matter for consideration by the Board shall
disclose in writing the nature of that interest and is disqualified from participating in the
deliberations of the Board in respect of that matter. (2) A member who contravenes subsection (1) ceases to be a member. Section 8—Allowances
Members of the Board and members of a committee of the Board shall be paid the allowances
approved by the Minister in consultation with the Minister responsible for Finance.

d members of a committee of the Board shall be paid the allowances
approved by the Minister in consultation with the Minister responsible for Finance.

Section 9—Appointment of committees
(1) The Board may appoint committees consisting of members of the Board or non-members
or both
(a) to perform a function of the Board assigned to the committee, or
(b) to advise the Board on a matter referred to the committee. 8

-members
or both
(a) to perform a function of the Board assigned to the committee, or
(b) to advise the Board on a matter referred to the committee. 8

(2) A committee of the Board may be chaired by a member of the Board. Section 10—Establishment of Committees of the Board
(1) Despite sub-section (1) of section 9, the Board shall establish
(a) a Consumer Services Committee,
(b) a Technical Committee,
(c) a Disciplinary Committee, and
(d) a Complaints Settlement Committee. (2) The Board shall determine the composition of these committees. (3) Each of these committees shall perform the functions of the Board assigned to it in writing
by the Board. Licences
Section 11—Requirement for licence
(1) A person shall not engage in a business or commercial activity in the downstream industry
unless that person has been granted a licence for that purpose by the Board. (2) The business or commercial activities of the downstream industry in respect of crude oil,
gasoline, diesel, liquefied petroleum gas, kerosene and other designated petroleum product are
(a) importation,
(b) exportation,
(c) re-exportation,
(d) shipment,
(e) transportation,
(f) processing,
(g) refining,
(h) storage,
(i) distribution,
(j) marketing, and
(k) sale. (3) The Authority may by legislative instrument limit or expand the scope of activities under
subsection (2).

stribution,
(j) marketing, and
(k) sale. (3) The Authority may by legislative instrument limit or expand the scope of activities under
subsection (2).

Section 12—Qualification for licence
A licence under this Act may only be granted to
(a) a citizen of Ghana; or
9

Section 12—Qualification for licence
A licence under this Act may only be granted to
(a) a citizen of Ghana; or
9

(b) a body corporate registered under the Companies Code, 1963 (Act 179); or
(c) a partnership registered under the Incorporated Private Partnerships Act, 1962 (Act 152);
or
(d) a foreign individual or foreign company in a registered joint venture relationship with a
citizen of Ghana or a Ghanaian company. Section 13—Application for licence
(1) A person may apply to the Board for a licence in the manner determined by the Board with
the prescribed fee. (2) The Board shall, within thirty working days of the receipt of an application, acknowledge
receipt and inform the applicant in writing of the decision of the Board. (3) The Board shall on satisfaction that an applicant has met all the preconditions including the
payment of the prescribed fee, direct the entry of the applicant's name in the Register of licences
established under section 20. Section 14—Conditions of licence
(1) A licence shall not be granted to an applicant unless the applicant has complied with any
other requirement specified by the Board and any other relevant enactment. (2) A licence granted by the Board is subject to the conditions specified in the licence.

ent specified by the Board and any other relevant enactment. (2) A licence granted by the Board is subject to the conditions specified in the licence.

(3) The Board may request from the applicant where necessary,
(a) a clearance certificate or an appropriate permit from the Environmental Protection Agency
and Ghana Standards Board;
(b) evidence of
(i) financial viability for the ownership or operation of the business or commercial activity,
(ii) adequate training, qualification and experience to engage in the business or commercial
activity in accordance with this Act, and
(iii) other requirements
in the manner and at the times the Board may determine. Section 15—Issue and renewal of licence
(1) Where an applicant meets the conditions required by this Act for a licence to engage in a
business or a commercial activity in the petroleum down-stream industry, the Board shall
approve the application and issue the applicant with the licence. (2) Despite subsection (1), the Board may for reasons in the public interest, public safety or
public security decide not to issue an applicant with a licence and shall inform the applicant of
its decision in accordance with subsection (1) of section 19.

curity decide not to issue an applicant with a licence and shall inform the applicant of
its decision in accordance with subsection (1) of section 19.

(3) A licence issued is valid for the period specified on it and may be renewed upon satisfying
all the conditions for renewal as specified in the licence. 10

cence issued is valid for the period specified on it and may be renewed upon satisfying
all the conditions for renewal as specified in the licence. 10

(4) An application for the renewal of a licence shall be made to the Board not later than sixty
days prior to its expiry and in the manner determined by the Board. (5) The applicant who seeks to renew a licence shall pay the prescribed fee prior to the issue
of the licence. Section 16—Display of licence
A licence issued under this Act shall be conspicuously exhibited by the licensee in a prominent
place on the business premises of the licensee. Section 17—Non transferability of licence
A licensee issued with the licence shall not transfer that licence to another person without the
prior approval of the Board.

ansferability of licence
A licensee issued with the licence shall not transfer that licence to another person without the
prior approval of the Board.

Section 18—Revocation, suspension and refusal to renew licence
The Board may revoke, suspend or refuse to renew a licence issued under this Act where
(a) the provisions of this Act or the Regulations are not being satisfactorily complied with,
(b) the continued operation of a business or commercial activity poses a risk to public health,
safety and security,
(c) the services provided by the licensee have deteriorated below the required standard,
(d) the licensee has not complied with any of the conditions of the licence,
(e) an offence under this Act in relation to the licensee is being investigated,
(f) the licensee has contravened but has not been convicted of a provision of this Act. Section 19—Notice of revocation, suspension or refusal to issue or renew licence.

s contravened but has not been convicted of a provision of this Act. Section 19—Notice of revocation, suspension or refusal to issue or renew licence.

(1) Where the Board intends to revoke, suspend or refuse to issue or renew a licence under this
Act, the Board shall give the applicant or licensee
(a) thirty days prior notice of the revocation, suspension or the intention to refuse to issue or
renew the licence,
(b) reasons for the intention to revoke, suspend or refusal to issue or renew the licence, and
(c) an opportunity to make an oral or written representation to the Board. (2) An applicant or licensee who receives a notice may make a representation to the Board
within fifteen working days from the date of receipt of the notice. (3) The Board shall within three months after the representation take a decision on the
representation and inform the applicant or licensee. (4) The Board shall as soon as practicable inform the Minister in writing of any decision it
takes on a representation. Section 20—Register
(1) The Board shall establish and maintain a register of licences that are granted by the Board. 11

it
takes on a representation. Section 20—Register
(1) The Board shall establish and maintain a register of licences that are granted by the Board. 11

(2) The Board shall enter in the register in respect of each licence
(a) the name and particulars of the person to whom the licence is granted, and
(b) the business or commercial activity to be engaged in by the licensee. (3) The Board shall publish the names and particulars of licensees, periodically in the Gazette
as determined by the Board. (4) The register shall be opened for public inspection during the hours and subject to the
payment of the fee, that may be determined by the Authority. Section 21—Removal of names from register
(1) The Board shall remove from the register the name of a person
(a) who has failed to comply with the conditions of the licence, or
(b) who has been found guilty of misconduct by the Disciplinary Committee. (2) The name of a person may be restored to the register by the Board. Section 22—Publication of licences
The Board shall publish in the Gazette a notice of each licence, suspension or revocation of a
licence made under this Act. Special requirements and authorisations relating to licences.

tte a notice of each licence, suspension or revocation of a
licence made under this Act. Special requirements and authorisations relating to licences.

Section 23—Application
Without limiting the provisions of section 14, sections 24 to 32 apply to licences for the
following activities;
(a) refinery,
(b) transportation,
(c) marketing, and
(d) sale. Section 24—Refinery licence
Where the Board grants a licence to an applicant to operate a refinery for the supply of
petroleum products, it shall authorise the licensee
(a) to convert crude oil into petroleum products for sale without discrimination to
(i) bulk customers of petroleum products, and
(ii) a person licensed under this Act to market petroleum products, and
(b) to obtain approval of the Authority for charges of services rendered. Section 25—Storage depots for petroleum products
12

petroleum products, and
(b) to obtain approval of the Authority for charges of services rendered. Section 25—Storage depots for petroleum products
12

(1) The Minister shall designate a network of strategic storage depots for petroleum products
to be managed by BOST or any other body on behalf of Government. (2) The Authority shall by publication in the Gazette designate operational storage depots for
petroleum products. Section 26—Operation of storage depots for petroleum products. (1) Where the Board grants a licence to an applicant to operate nationwide a network of storage
depots for the storage and trans-shipment of petroleum products, it shall authorise the licensee
to provide services for storage and trans-shipment of petroleum products to bulk consumers
and persons licensed under this Act to market petroleum products. (2) The Board shall grant only one licence to a person for the operation of a network of storage
depots for the storage and trans-shipment of petroleum products at any particular time in the
country. (3) A person granted a licence for this purpose shall be known as the operator of storage depots
for petroleum products.

rticular time in the
country. (3) A person granted a licence for this purpose shall be known as the operator of storage depots
for petroleum products.

Section 27—Conditions for licence as operator of storage depots for petroleum products
Where the Board grants a licence to an applicant for the operation of storage depots for
petroleum products, the following conditions are applicable for purposes of compliance;
(a) an obligation to provide without discrimination, services on request for the storage and
trans-shipment of petroleum products to bulk customers and persons licensed for the
transportation and marketing of petroleum products, and
(b) the approval of the Authority for charges for services rendered. Section 28—Bulk transportation of petroleum products
Where the Board grants a licence to an applicant for the bulk transportation of petroleum
products through a means that the Board may determine, the Board shall include a condition
that
(a) the licensee enters into an agreement to provide services without discrimination to its
customers, and
(b) the charge for the bulk transportation of petroleum products
(i) through pipeline systems,
(ii) by barges,
(iii) by rail tanker wagons, and
(iv) bulk road vehicles,
shall be subject to the approval of the Board.

(i) through pipeline systems,
(ii) by barges,
(iii) by rail tanker wagons, and
(iv) bulk road vehicles,
shall be subject to the approval of the Board.

Section 29—Petroleum products marketing licence
Where the Board grants a licence to an applicant to procure and sell petroleum products the
licence shall authorise the licensee to procure and sell petroleum products to
13

a licence to an applicant to procure and sell petroleum products the
licence shall authorise the licensee to procure and sell petroleum products to
13

(a) bulk customers; and
(b) to the public through retail stations or reseller outlets. Section 30—Construction of petroleum products depots
A person shall not construct or operate in the petroleum downstream industry
(a) a petroleum products retail station. (b) a petroleum products storage depot and pipeline,
(c) a liquefied petroleum gas depot, or
(d) an oil refinery
without the prior written authorisation of the Board. Section 31—Display of prices on dispensing units
A person shall not sell or display for sale a petroleum product on a dispensing unit or flow
meter unless the price of the petroleum product is indicated in cedis and pesewas. Section 32—Prohibition to sell petroleum products
(1) A person, other than a person licensed under this Act, shall not
(a) sell or offer for sale a petroleum product, or
(b) be in possession of a petroleum product in quantities unreasonably in excess of that person's
immediate requirement, or
(c) receive a petroleum product for sale. (2) Subsection (1) does not apply to petty trading in kerosene. Section 33—Monitoring of stock of petroleum products at strategic storage depots.

ale. (2) Subsection (1) does not apply to petty trading in kerosene. Section 33—Monitoring of stock of petroleum products at strategic storage depots.

The Ministry shall
(a) monitor the release and storage of stock of petroleum products stored at strategic storage
depots, and
(b) ensure that minimum stock is retained as reserve stock. Powers and Functions of petroleum service providers and related institutions
Section 34—Relationship of Authority with other institutions and petroleum service providers
Petroleum service providers and relevant institutions shall
(a) in consultation with the Board, enforce standards of performance in respect of operations
in the petroleum downstream industry, and
(b) ensure conformity with the standards and protocols prescribed by the Board. Section 35—Refinery and manufacturing processes
14

tream industry, and
(b) ensure conformity with the standards and protocols prescribed by the Board. Section 35—Refinery and manufacturing processes
14

The Board shall monitor the refinery and manufacturing processes of petroleum products to
ensure the application of clean and safe technology. Section 36—Duty to set specifications of fuel products
The Ghana Standards Board shall after consultation with the Board
(a) set the specifications for each type of fuel and fuel related product, and
(b) specify the allowable content of additives in each type of fuel and fuel related product. Section 37—Submission of reports to Board
(1) Where a petroleum service provider's operations in the downstream industry involves the
importation, refining and marketing of petroleum products, that petroleum service provider
shall submit a monthly report on a date determined by the Board that indicates details of actual
(a) imports,
(b) production,
(c) demestic sales and consumption,
(d) inventory of crude oil and products, and
(e) exports. (2) The Board shall within thirty days consider the content of the report and initiate the action
to be taken where necessary.

ducts, and
(e) exports. (2) The Board shall within thirty days consider the content of the report and initiate the action
to be taken where necessary.

(3) The report and the decision taken by the Board shall be forwarded by the Board to the
Ministry.[As substituted by the National Petroleum Authority (Amendment) Act, 2016 (Act
913), s.2]
(4) Despite subsection (1), the Board may require a petroleum service provider to submit a
report
(a) to address a specific issue, and
(b) to furnish the Board with information
in respect of the conduct, practices, and management by that petroleum service provider related
to the business or activity including relations with other relevant institutions, partnerships and
individuals. Section 38—Disclosure of information by Board and submission of reports
(1) Subject to the provisions of this Act and any other enactment, the Board may disclose to
the public information obtained by it in the performance of its functions under this Act. (2) Despite subsection (1), the Board shall not disclose to a person
(a) a trade secret, and
(b) privileged commercial or financial information,
15

t. (2) Despite subsection (1), the Board shall not disclose to a person
(a) a trade secret, and
(b) privileged commercial or financial information,
15

without the prior written undertaking of that person to keep the secret, information or matter in
strict confidence and to use it for the purpose for which it was sought. (3) Despite subsection (1), the Board shall not disclose to a person matters that relate to national
security. (4) The Board shall submit to the Ministry a quarterly report covering the activities and the
operations of the Authority for the period of the year to which the report relates. Liberalisation of the petroleum downstream industry and promotion of fair competition
Section 39—Duties of petroleum service providers
(1) Despite section 37, a licensee shall from the commencement of any business or commercial
activity specified under section 11(2) submit a written quarterly report to the Board relating to
the business or activity undertaken. (2) A petroleum service provider who undertakes a business or activity that involves the
importation of crude oil or petroleum products, shall ensure that the activity accords with the
Basel Convention and Marpol Convention.

t involves the
importation of crude oil or petroleum products, shall ensure that the activity accords with the
Basel Convention and Marpol Convention.

Section 40—Promotion of fair trade practices
(1) The Board shall support commercial practices in the petroleum downstream industry which
(a) serve the public interest,
(b) achieve efficiency and cost reduction,
(c) ensure the continuous supply of petroleum products, and
(d) enhance environmental protection. (2) For purposes of this section "commercial practices" includes
(a) nationalised depot operations,
(b) open access to storage tanks and pipeline utilisation, and
(c) joint action on spill control and fire prevention. (3) To ensure the observance of fair equitable practices and the enforcement of existing
contracts, the Board shall monitor the conduct of relationships amongst petroleum service
providers. Section 41—Promotion of new entrants
The Board shall formulate and establish a programme to promote new entrants as petroleum
service providers in the petroleum downstream industry.

rants
The Board shall formulate and establish a programme to promote new entrants as petroleum
service providers in the petroleum downstream industry.

Section 42—Incentives for free zone developers and enterprises
(1) A licensed free zone developer or enterprise licensed under the Free Zone Act, 1995 (Act
504) shall for purposes of refining and storage of petroleum products after licensing under this
Act, be eligible to enjoy the same incentives offered by the Free Zone Board within the
16

nd storage of petroleum products after licensing under this
Act, be eligible to enjoy the same incentives offered by the Free Zone Board within the
16

petroleum downstream industry as approved by the Board and specified in the licence issued
under this Act. (2) The provisions of this section apply only to a new entrant. Monopoly provisions
Section 43—Formation of cartels and monopolies
(1) The Board shall in the performance of its functions take the necessary measures in
compliance with the Protection Against Unfair Competition Act, 2000 (Act 589) to prevent the
formation of cartels, monopolies and unfair competition in the petroleum downstream industry. (2) A person or an agent of that person shall not form a cartel within the petroleum downstream
industry. (3) A person shall not gain, hold or secure a monopoly of a business or commercial activity
within the petroleum downstream industry. (4) A person who contravenes or fails to comply with a provision of this section, commits an
offence and is liable on summary conviction to a term of imprisonment not exceeding ten years
or to a fine not exceeding five thousand penalty units calculated in a currency determined by
the Minister, or to both.

onment not exceeding ten years
or to a fine not exceeding five thousand penalty units calculated in a currency determined by
the Minister, or to both.

Section 44—Cartelization
(1) A person or an agent of that person shall not indulge in or assist in cartelization in the
petroleum downstream industry. (2) For the purposes of this section, "cartelization" means an agreement, combination of or
concerted action by refiners, importers or dealers or their agents, to
(a) fix prices,
(b) restrict outputs,
(c) divide markets either by product or by area, or
(d) allocate markets either by products or by areas
to restrain trade or free competition and contractual stipulation that prescribes pricing levels
and profit margins at variance with the prescribed petroleum formula. (3) A person who commits an offence under this section is liable on summary conviction to a
term of imprisonment not exceeding ten years or to a fine not exceeding fifteen thousand
penalty units calculated in a currency determined by the Minister, or to both.

ent not exceeding ten years or to a fine not exceeding fifteen thousand
penalty units calculated in a currency determined by the Minister, or to both.

Section 45—Promotion of retail competition
(1) To ensure the prevalence of fair prices of petroleum products and to facilitate the attainment
of a genuine competitive product market at the retail level, the Board shall promote through
information dissemination, the active and direct participation of the private sector in the
retailing of petroleum products. 17

shall promote through
information dissemination, the active and direct participation of the private sector in the
retailing of petroleum products. 17

(2) The retailing of petroleum products may be effected through joint venture or supply
agreements for the establishment and operation of retail stations. (3) The Board shall in collaboration with relevant institutions co-ordinate with
(a) new entrants, and
(b) existing petroleum dealers
in order to facilitate the efficient establishment, operation and maintenance of retial stations. (4) The provisions of this section apply to LPG retailing. (5) For purposes of this section "petroleum dealers" includes large and small retail outlets. Complaints and settlement of disputes
Section 46—Right of complaint
(1) A person may submit a written or oral complaint to the Complaints Settlement Committee
in respect of the provision of petroleum services or pricing. (2) The Complaints Settlement Committee shall examine and determine a complaint submitted
to it and take appropriate action within a period not exceeding thirty days from the date of
receipt of the complaint.

determine a complaint submitted
to it and take appropriate action within a period not exceeding thirty days from the date of
receipt of the complaint.

(3) A person who has made a complaint to the Complaints Settlement Committee where
(a) no action is taken on the complaint within the period specified, or
(b) that person is dissatisfied with the action taken by the Committee may submit the complaint
to the Board for further investigation. (4) The Board shall investigate a complaint received by it unless it is of the opinion that
(a) the complaint is trivial, frivolous, vexatious or not made in good faith,
(b) the complaint is the same subject already under investigation, or before a court, or
(c) the complaint is prejudicial to national security. (5) The Board shall within fourteen working days of the receipt of a complaint make an
appropriate determination together with a statement of reasons for the determination made.

fourteen working days of the receipt of a complaint make an
appropriate determination together with a statement of reasons for the determination made.

Section 47—Settlement of dispute
(1) The petroleum service providers in a dispute concerning a contractual matter that arises
with respect to
(a) margins set by dealers,
(b) freight rates for the transportation of petroleum products,
(c) margins set by the liquuefied petroleum gas marketing companies,[As substituted by the
National Petroleum Authority (Amendment) Act, 2016 (Act 913), s.3]
(d) any other matter designated by the Board
18

ng companies,[As substituted by the
National Petroleum Authority (Amendment) Act, 2016 (Act 913), s.3]
(d) any other matter designated by the Board
18

shall negotiate in good faith to reach an amicable settlement of the dispute. (2) Where the dispute cannot be amicably settled through negotiation, the aggrieved party may
submit the dispute to the Board for arbitration. (3) The Board shall after consultation with the Minister, set up an arbitration panel under the
Arbitration Act, 1961 (Act 38) to arbitrate and settle the dispute. Administrative and financial provisions
Section 48—Appointment and responsibility of Chief Executive
(1) The President shall in accordance with article 195 of the Constitution, appoint the Chief
Executive for the Authority. (2) The Chief Executive shall hold office on the terms and conditions specified in the letter of
appointment. (3) The Chief Executive shall be a member of the Board. (4) The Chief Executive shall be responsible for the day-to-day administration of the affairs of
the Authority and shall ensure the implementation of the decisions of the Board. (5) The Chief Executive may delegate a function to an officer of the Authority but shall not be
relieved from the ultimate responsibility for the performance of the delegated function.

te a function to an officer of the Authority but shall not be
relieved from the ultimate responsibility for the performance of the delegated function.

Section 49—Appointment of other staff
(1) The President shall in accordance with article 195 of the Constitution appoint other staff of
the Authority. (2) The Authority shall have other officers and staff that are necessary for the proper and
effective performance of its functions. (3) The Authority may engage the services of advisers on the recommendations of the Board. (4) Other public officers may be transferred or seconded to the Authority or may otherwise
give assistance to it. Section 50—Funds of the Authority
(1) The funds of the Authority include
(a) moneys provided by Parliament,
(b) any fee or charge determined by the Board in consultation with Minister and Minister for
Finance,
(c) loans granted to the Authority by the Government or by any other person or body,
(d) donations, grants and gifts, and
(e) any other moneys that are approved by Parliament. (2) Funds received by or on behalf of the Authority shall be deposited by the appropriate person
or authority to the credit of the Authority in an account in a bank or banks approved by the
Authority. 19

hall be deposited by the appropriate person
or authority to the credit of the Authority in an account in a bank or banks approved by the
Authority. 19

(3) Each payment from the Fund shall be signed by the chairperson and
(a) the Chief Executive; or
(b) the officer responsible for financial matters designated by the Board. Section 51—Expenses of the Authority
(1) The expenses of the Authority shall be paid from moneys provided for the Fund under
section 50. (2) Where, after having defrayed the outstanding expenses, the Authority has an excess amount,
the Authority shall transfer that amount to the Consolidated Fund unless the Minister for
Finance in consultation with the Minister approves the retention by the Authority of a part or
the whole of that excess amount. Section 52—Accounts and audit
(1) The Board shall keep proper books of account and records in relation to them in the form
approved by the Auditor-General. (2) The Board shall submit the accounts of the Authority to the Auditor-General for audit within
three months after the end of the financial year. (3) The Auditor-General shall, not later than six months after the receipt of the accounts, audit
the accounts and submit a copy of the audit report to Parliament. (4) The financial year of the Authority is the same as the financial year of the Government.

unts and submit a copy of the audit report to Parliament. (4) The financial year of the Authority is the same as the financial year of the Government.

Section 53—Annual report and other reports
(1) The Board shall within one month after the receipt of the audit report, submit an annual
report to the Minister covering the activities and the operations of the Authority for the year to
which the report relates. (2) The annual report shall include the report of the Auditor-General. (3) The Minister shall, within one month after the receipt of the annual report, submit the report
to Parliament with a statement that the Minister considers necessary. (4) The Board shall also submit to the Minister any other reports which the Minister may
require in writing. Section 54—Borrowing powers
Subject to the provisions on loans in Article 181 of the Constitution, the Authority may obtain
loans and other credit facilities on the guarantee of Government from the bank and institutions
that the Minister for Finance approves. Miscellaneous matters, offences and general provisions. Section 55—Procedures for dealing with complaints from consumers
(1) Each petroleum service provider shall establish an internal procedure for dealing with
complaints by its consumers or potential consumers of petroleum services offered. 20

e provider shall establish an internal procedure for dealing with
complaints by its consumers or potential consumers of petroleum services offered. 20

(2) The procedure shall not be established or modified unless
(a) the petroleum service provider has consulted the relevant persons or institutions that
constitute a fair representation of the consumers for whom it provides the service, and
(b) the Board has approved the proposed procedure or modification. (4) A petroleum service provider shall publish the approval procedure in the Gazette. (5) The Board may direct a petroleum service provider to review its procedures or the manner
it operates and make modifications accordingly. (6) Copies of the procedure shall be lodged with the Board. Section 56—Inspectorate
(1) For the purpose of giving effect to this Act, the Authority shall establish an Inspectorate
division of the Authority. (2) The Board may appoint a Chief Inspector and other inspectors to carry out the functions
that the Authority may determine for the purpose of enforcing this Act. (3) An inspector authorised by the Board may at reasonable times enter premises used or
suspected to be used by a petroleum service provider to investigate activities there.

ised by the Board may at reasonable times enter premises used or
suspected to be used by a petroleum service provider to investigate activities there.

(4) Where an authorised inspector enters the premises, the inspector shall
(a) ensure that displayed prices of petroleum products are consistent with the prescribed
petroleum pricing formula,
(b) inspect
(i) the required licence of the petroleum service provider,
(ii) the premises,
(iii) any other thing which is relevant to the investigation, and
(c) carry out any other function to ensure that the provisions of this Act are complied with. (4) The inspector shall at the request of the petroleum service provider responsible for the
premises produce relevant authorisation. (5) The Board shall periodically cause the inspection of premises. Section 57—Gazette notices
Where a provision of this Act requires publication in the Gazette, the Board may, in addition
to or in exceptional circumstances, cause the publication to be published
(a) in the national daily newspapers, and
(b) on radio and television
and the provisions of this Act shall have effect accordingly. Section 58—Misapplication of prescribed petroleum pricing formula
21

adio and television
and the provisions of this Act shall have effect accordingly. Section 58—Misapplication of prescribed petroleum pricing formula
21

(1) A petroleum service provider shall not misapply the prescribed petroleum pricing formula
to result in an overcharge of a petroleum product for a consumer. (2) A petroleum service provider who contravenes the provisions of sub-section (1) commits
an offence. Section 59—False statements and withholding material information
(1) A petroleum service provider who makes a false statement in respect of a matter under this
Act, commits an offence. (2) A petroleum service provider who in furnishing the Board with information or producing a
document for purposes of this Act or Regulations made under this Act
(a) makes a statement which the petroleum service provider knows to be false in a material
particular, or
(b) produces, provides, sends or otherwise makes use of a document which is false or which
the petroleum service provider knows to be false in a material particular
commits an offence.

therwise makes use of a document which is false or which
the petroleum service provider knows to be false in a material particular
commits an offence.

Section 60—Obstruction or interference with officers and employees of the Authority
A person who unlawfully obstructs or hinders an officer, agent or employee of the Authority
acting in the performance of a function under this Act, or Regulations commits an offence and
is liable on summary conviction to a term of imprisonment not exceeding ten years or to a fine
not exceeding five thousand penalty units calculated in a currency determined by the Minister,
or to both. Section 61—Other offences
(1) A person who unlawfully destroys or damages equipment, installation or facility for the
refining, storage, bulk transportation, marketing or sale of petroleum products commits an
offence and is liable on summary conviction to a term of imprisonment not exceeding ten years
or to a fine not exceeding fifteen thousand penalty units calculated in a currency determined
by the Minister, or to both.

ent not exceeding ten years
or to a fine not exceeding fifteen thousand penalty units calculated in a currency determined
by the Minister, or to both.

(2) A person who commits an offence under this Act for which a penalty has not been
prescribed is liable on summary conviction to a fine of not less than two thousand, five hundred
penalty units and not exceeding fifteen thousand penalty units calculated in a currency
determined by the Minister, or to a term of imprisonment not exceeding ten years or to both. (3) Where an offence is committed by a body corporate under this Act, every director, manager,
partner, secretary or officer of that body corporate, or a person purporting to act in that capacity
is liable on summary conviction to the penalty provided in respect of that offence. (4) A person shall not be treated as having committed an offence under subsection (2) where
that person proves that the offence was committed without that person's consent or connivance
and that due diligence was exercised to prevent the commission of the offence having regard
to the circumstances. PART II—ESTABLISHMENT OF UNIFIED PETROLEUM PRICE FUND
22

ce was exercised to prevent the commission of the offence having regard
to the circumstances. PART II—ESTABLISHMENT OF UNIFIED PETROLEUM PRICE FUND
22

Establishment and management of the Fund
Section 62—Establishment of the Fund
There is established by this Act a Unified Petroleum Price Fund referred to in this Act as the
"Fund". Section 63—Objects of the Fund
The objects of the Fund are to
(a) ensure the regular supply of petroleum to all parts of the country,
(b) ensure that prices of petroleum products include an element that represents the estimated
cost of distribution, and
(c) achieve a petroleum products distribution system which is efficient. Section 64—Sources of money for the Fund
The sources of money for the Fund are
(a) moneys paid by oil marketing companies which is the difference between the UPPF margin
in the price build up and actual freight cost of each oil marketing company if that oil marketing
company operates below the equalisation point, and
(b) any other money that the Minister with the approval of Parliament may determine. Section 65—Bank account for the Fund
Moneys for the Fund shall vest in the Board and shall be paid into a bank account opened by
the Board with the approval of the Accountant-General.

und
Moneys for the Fund shall vest in the Board and shall be paid into a bank account opened by
the Board with the approval of the Accountant-General.

Section 66—UPPF Management Committee
(1) There is established by this Act a UPPF Management Committee consisting of
(a) the chairperson who is the Chief Executive of the Authority,
(b) the industry co-ordinator of oil marketing companies,
(c) a representative of the Association of Tanker Owners' Union,
(d) a representative of the BOST, and
(e) the Fund Co-ordinator appointed under section 74. (2) For purposes of this section "industry co-ordinator" means the focal person who represents
the oil marketing companies. Section 67—Functions of the UPPF Management Committee
(1) The UPPF Management Committee is responsible for the management of the Fund and
shall for that purpose
(a) pursue policies to achieve the objects of the Fund;
23

nagement Committee is responsible for the management of the Fund and
shall for that purpose
(a) pursue policies to achieve the objects of the Fund;
23

(b) collect or arrange to be collected moneys lawfully due to the Fund through procedures
determined by the Authority;
(c) account for the money in the Fund;
(d) invest with the approval of the Minister some moneys of the Fund in safe securities it
considers financially beneficial to the Fund;
(e) pay approved expenditure charged on the Fund under this Act;
(g) advise the Authority on the need to amend the UPPF margin in the price build up, where
mileage rates exceed the UPPF margin built into the ex-pump price; and
(h) perform any other function that is incidental to the achievement of the object of the Fund. Section 68—Meetings, tenure of office, disclosure and allowances
The provisions in sections 5 to 8 on meetings, tenure of office, disclosure of interest and
allowances apply to the UPPF Management Committee for the Fund with the necessary
modifications. Section 69—Disbursement from the Fund
(1) An oil marketing company shall, if it operates beyond the equalisation point, be paid from
the Fund, the monetary value of the difference between the UPPF margin in the price build up
and the actual freight cost.

lisation point, be paid from
the Fund, the monetary value of the difference between the UPPF margin in the price build up
and the actual freight cost.

(2) Payments made into and out of the Fund shall be by monetary transactions other than cash
transactions. (3) A cheque for payment out of the Fund shall be signed by the chairperson of the Board and
either
(a) the Chief Executive, or
(b) the Fund Co-ordinator. Section 70—Operation of the Fund
(1) The UPPF Management Committee shall for purposes of operating the Fund consult with
the Authority to fix transportation rates for distances from
(a) a crude oil refinery, or
(b) a bulk supply point
to other locations in the country. (2) The rates fixed may be reviewed periodically by the UPPF Management Committee after
consultation with the Authority, to reflect current economic trends. (3) The cash flow of the Fund shall, depending on the equalisation point, be based on the
locations from which the oil marketing companies operate. (4) An oil marketing company shall not be paid moneys owed to it out of the Fund until it has
complied with section 71. 24

arketing companies operate. (4) An oil marketing company shall not be paid moneys owed to it out of the Fund until it has
complied with section 71. 24

Section 71—Submission of reports by oil marketing companies
(1) Each oil marketing company shall submit to the co-ordinator
(a) a detailed report on monthly sales analysis based on locations, and
(b) delivery notes in respect of the sales mentioned in the report
not later than the tenth day of the month following the month to which a report relates. (2) An oil marketing company shall keep a record of the copy of the report and delivery notes
for a period of six years. (3) The co-ordinator shall on receipt of the reports, subject them to scrutiny and prepare a
summary indicating the amounts to be paid to or received from each oil marketing company. (4) The summary shall after verification be put before the UPPF Management Committee as
soon as practicable, for approval. (5) The report and delivery notes shall, when requested by the Board, be made available by an
oil marketing company to any auditor appointed by the Auditor-General
Section 72—Submission of report by UPPF Management Committee
(1) The UPPF Management Committee shall submit a quarterly report to the Board. (2) The Board shall within fourteen days after receipt of the report submit the report to the
Minister.

shall submit a quarterly report to the Board. (2) The Board shall within fourteen days after receipt of the report submit the report to the
Minister.

Administrative, Financial and Miscellaneous provisions
Section 73—Administrative expenses of the Fund
(1) The administrative and other expenses of the Fund shall be subject to the approval of the
Board. (2) The UPPF Management Committee may, after defraying expenses of the Fund, and with
the approval of the Board in consultation with the Minister direct in writing that a part of any
excess moneys located in the bank account for the Fund be utilised in the execution of a
designated project related to the petroleum downstream industry. Section 74—Fund Co-ordinator and functions
(1) The Board shall appoint a person with managerial experience in the petroleum downstream
industry as the Fund Co-ordinator. (2) The co-ordinator shall hold office on the terms and conditions specified in the letter of
appointment. (3) The co-ordinator shall be a member of the UPPF Management Committee. (4) The co-ordinator shall
(a) be responsible for the day-to-day administration of the affairs of the UPPF Management
Committee, and
25

ent Committee. (4) The co-ordinator shall
(a) be responsible for the day-to-day administration of the affairs of the UPPF Management
Committee, and
25

(b) ensure the implementation of the decisions of the Board except that the co-ordinator shall
not perform a function related to the distribution of petroleum products in the petroleum
downstream industry. Section 75—Exemption
The Fund is exempt from payment of any form of tax. Section 76—Accounts and audit for the Fund. (1) The UPPF Management Committee shall keep proper books of account and records in
relation to them in the form approved by the Auditor-General. (2) The UPPF Management Committee shall submit the accounts of the Fund to the Auditor
General for audit within three months after the end of the financial year. (3) The Auditor-General or an auditor appointed by the Auditor-General shall not later than
three months after the receipt of the accounts audit the accounts and forward a copy of the audit
report to the Minister. (4) The Auditor-General may request an oil marketing company to furnish the Auditor-General
with
(a) a detailed report on analysis of sales based on locations,
(b) delivery notes on the sales report mentioned in paragraph (a), and
(c) other information the Auditor-General may require for the efficient execution of duties.

notes on the sales report mentioned in paragraph (a), and
(c) other information the Auditor-General may require for the efficient execution of duties.

(5) The oil marketing company shall comply with the request within fourteen days from the
date of receipt of the request. (6) In addition to the annual audit, technical audits may be conducted on selective basis by the
Auditor-General or by an auditor appointed by the Auditor-General. Section 77—Annual report relating to the Fund
(1) The UPPF Management Committee shall within one month after the receipt of the audit
report, submit an annual report to the Minister covering the activities and the operations of the
Fund for the year to which the report relates. (2) The annual report shall include the report of the Auditor-General. (3) The Minister shall within one month after the receipt of the annual report submit the report
to Parliament with a statement that the Minister considers necessary. (4) The UPPF Management Committee shall also submit to the Minister any other reports
which the Minister may require in writing.

considers necessary. (4) The UPPF Management Committee shall also submit to the Minister any other reports
which the Minister may require in writing.

Section 78—Penalties for misconduct
(1) Where a person connives or colludes with a bulk transporter to make false representations
to the fund co-ordinator in respect of petroleum products not delivered to destinations for which
they had been collected, the Authority shall suspend the licences of that person and the bulk
transporter for the period that the Authority shall determine. 26

been collected, the Authority shall suspend the licences of that person and the bulk
transporter for the period that the Authority shall determine. 26

(2) Where a person fails to submit
(a) the monthly report on analysis of its sales at different locations, and
(b) delivery notes in respect of the sales
to the fund co-ordinator not later than the tenth day of the month following the month to which
the report relates, payment out of the Fund to that person for services rendered in respect of the
sales shall be delayed for three months. (3) A person who falsifies a calibration certificate of its bulk road vehicle with the sole aim of
cheating and causes the shortage and under delivery of petroleum products to retail outlets shall
be sanctioned by the Disciplinary Committee established under section 10(1). (4) Where a transporter's own vehicle is involved in an act that results in the contravention of
a provision of this Act, the Authority may suspend or revoke the licence of that transporter.

involved in an act that results in the contravention of
a provision of this Act, the Authority may suspend or revoke the licence of that transporter.

Section 79—Offences related to transportation of petroleum products
(1) Where a transporter or an agent of that transporter compromises the quality and purity of
petroleum products, that transporter or agent commits an offence and is liable on summary
conviction to a term of imprisonment not exceeding two years or to a fine not exceeding five
thousand penalty units calculated in a currency determined by the Minister or to both. (2) A driver of a bulk road vehicle who adulterates a petroleum product commits an offence
and
(a) is liable on summary conviction to a term of imprisonment not exceeding two years or to
a fine not exceeding five thousand penalty units calculated in a currency determined by the
Minister, or to both; and
(b) shall be prohibited from driving a bulk road vehicle that belongs to a member of the Tanker
Owners' Union.

rmined by the
Minister, or to both; and
(b) shall be prohibited from driving a bulk road vehicle that belongs to a member of the Tanker
Owners' Union.

Section 80—Regulations
(1) The Authority may by legislative instrument make Regulations to
(a) prescribe the criteria and determinants for the formulation by the Board of the prescribed
petroleum pricing formula;
(b) prescribe quality of services provided for petroleum products;
(c) provide for the procedure for submission of complaints and investigation and determination
of complaints, in respect of a matter arising under this Act;
(d) prescribe, modify and review the prescribed petroleum pricing formula;
(e) provide for competitive bidding procedures for the procurement of petroleum products and
crude oil;
(f) provide for the discipline of licensees;
(g) provide guidelines for marketing operations and fair competition in the petroleum
downstream industry;
27

provide for the discipline of licensees;
(g) provide guidelines for marketing operations and fair competition in the petroleum
downstream industry;
27

(h) prescribe standards of performance for the provision of petroleum services;
(i) provide for the protection of consumers;
(j) prescribe testing facilities for quality control of crude oil and petroleum products in the
petroleum downstream industry;
(k) regulate licensing;
(l) prescribe the fees, and charges to be paid under this Act;
(m) provide for the inspection of petroleum service providers' premises;
(n) control the importation, exportation, landing, loading, unloading and transportation of
petroleum products;
(o) provide for the storage, handling and sale of petroleum products and for licensing of places
in which petroleum products are stored; and
(p) regulate the handling of petroleum products in the fuelling of aircraft;
(q) preserve the quality and purity of petroleum products and crude oil;
(r) provide for the effective operation of strategic storage depot;
(s) provide for any other matter necessary for the effective implementation of the provisions of
this Act. (2) Regulations issued under subsection (1) shall be signed by the chairperson of the Board.

e effective implementation of the provisions of
this Act. (2) Regulations issued under subsection (1) shall be signed by the chairperson of the Board.

(3) Despite the Statutory Instrument Act, 1997 (Act 539) the penalty for contravention of the
disciplinary regulations shall be a fine not exceeding two thousand five hundred penalty units
calculated in a currency determined by the Minister. Section 81—Interpretation
In this Act, unless the context otherwise requires,
"Authority" means the National Petroleum Authority established under section 1 of this Act;
"Basel Convention" means the global agreement, ratified by several member countries and the
European Union to minimize the generation of hazardous wastes in terms of quantity and
hazardousness, dispose of hazardous wastes as close to the source of generation as possible,
and reduce the movement of hazardous wastes;
"Bio-fuel" means non fossil fuel produced from crops and plants; [As inserted by the
Renewable Energy Act, 2011 (Act 832), s.

ent of hazardous wastes;
"Bio-fuel" means non fossil fuel produced from crops and plants; [As inserted by the
Renewable Energy Act, 2011 (Act 832), s.

52 (1)(b)]
"Board" means the governing board of the Authority;
"BOST" means Bulk Oil Storage and Transportation Company registered under the Companies
Code 1963 (Act 179) and charged with maintaining the country's strategic stocks of petroleum
products;
"bulk customer" means a customer that takes delivery of quantities of petroleum products in
excess of four thousand five hundred litres;
28

products;
"bulk customer" means a customer that takes delivery of quantities of petroleum products in
excess of four thousand five hundred litres;
28

"bulk supply" means a petroleum product of a quantity that exceeds four thousand five hundred
litres;
"bulk road vehicle" means a road tanker designed to transport in bulk a minimum of four
thousand, five hundred litres of petroleum products;
"bulk supply point" means designated locations including the refinery or depots where bulk
road tankers obtain bulk supplies of petroleum products and distribute them to retail outlets or
consumer points;
"bulk transporter" means a transporter duly licensed to transport in bulk a minimum of four
thousand, five hundred litres of petroleum products;
"cartel" means a group of business persons which combine to control the production and
marketing of petroleum products to avoid competition with one another;
"crude oil" means oil in its natural state before it has been refined or otherwise treated and
excludes water, bottoms or sludge, sediments and foreign substances;
"Commissioner" means the Commissioner of Customs, Excise and Preventive Service;
"court" means the High Court;
"dealer" means a person who is contracted by a licensed oil marketing company, operates a
filling or service station and is engaged in the marketing and direct sales of petroleum products
to motorists, end users, and other consumers and includes a retailer and a reseller;
"dealer's margin" means the aggregate of the cost incurred by a dealer in retailing petroleum
products at a retail station and the return on investment;
"delivery notes" means notes or invoices issued by an oil marketing company for the exact
quantity of petroleum products ordered by a consumer to be delivered or supplied by a bulk
road vehicle to a retail outlet or consumer and includes a retailer;
"designated petroleum product" means a petroleum product designated by the Minister by
publication in the Gazette as a product to which the provisions of this Act apply;
"distribution margins" includes primary distribution margin, BOST margin, marketers margin,
dealers margin and U.P.P.F.

provisions of this Act apply;
"distribution margins" includes primary distribution margin, BOST margin, marketers margin,
dealers margin and U.P.P.F.

margin;
"Energy Commission" means the Commission established under the Energy Commission Act,
1997 (Act 541);
"equalisation point" means a predetermined distance where the actual freight cost for the
transport of a petroleum product from a Refinery or a storage depot to other locations in the
country, is equal to the UPPF margin built into the retail price of the product, and form the
basis for determining amounts to be paid in respect of the actual delivery point
(a) by an oil marketing company into the Fund, or
(b) from the Fund to an oil marketing company;
"ex-refinery price" means the amount of money equivalent to the actual cost of importing
finished petroleum products and not exceeding the import parity price;
29

price" means the amount of money equivalent to the actual cost of importing
finished petroleum products and not exceeding the import parity price;
29

"ex-pump price" means the price at which a given quantity of a petroleum product is sold at a
retail station dispensing pump;
"full cost recovery" means the level at which the ex-refinery price of petroleum products is
equated to the import parity price;
"Fund" means the Fund established under section 62;
"Free Zones Board" means the Board established under the Free Zone Act, 1995 (Act 504);
"Ghana Standards Board" means the Board established under the Standards Decree, 1973
(NRCD 173);
"import parity price" means the ceiling price equivalent to the cost of importing finished
petroleum products into storage depots along the coast 15km inland of Ghana as determined
by the prescribed petroleum pricing formula;
"licensee" means a person issued with a licence under this Act;
"LPG" means liquefied petroleum gas;
"LPG distributor" means a person engaged in importing, re-exporting exporting, refilling,
transporting, marketing and selling of LPG to end users and other consumers;
"LPG distributor" "liquefied petroleum gas marketing company" means a company that is
engaged in importing, re-exporting, refilling, transporting, marketing and selling of liquefied
petroleum gas to end users and other consumers;[As substituted by the National Petroleum
Authority (Amendment) Act, 2016 (Act 913), s.4(a)]
"marketers margin" means the aggregate of the cost incurred by the oil marketing companies
in ensuring availability of petroleum products at the retail stations and the return on investment;
"Marpol Convention" means the Convention for the Prevention of Pollution from Ships and is
the main international convention covering prevention of pollution of the marine environment
by ships from operational or accidental causes; and it is a combination of two treaties adopted
in 1973 and 1978;
"Minister" means Minister responsible for Petroleum; [As substituted by the National
Petroleum Authority (Amendment) Act, 2016 (Act 913), s.4(b)]
"Ministry" means Ministry of Petroleum;[As substituted by the National Petroleum Authority
(Amendment) Act, 2016 (Act 913), s.4(c)]
"new entrant" means a petroleum service provider who is licensed and has operated in the
petroleum downstream industry for a period not exceeding one year and includes a free zone
developer and enterprise;
"oil marketing company" means a company registered as an oil marketing company by law in
Ghana and licensed under this Act to procure and sell petroleum products to bulk customers
and the general public through retail stations and reseller outlets;
"operating storage depot" means a depot designed to hold stock of petroleum products for sale
to licensees and bulk customers;
30

nd reseller outlets;
"operating storage depot" means a depot designed to hold stock of petroleum products for sale
to licensees and bulk customers;
30

"petroleum products" means products created through the refining of crude oil by distillation,
cracking, solvent refining and chemical treatment which turn out as primary stocks in the form
of liquefied petroleum gas, naphtha, gasoline, kerosene, aviation turbine kerosene, gas oil,
residual fuel oils, waxes and petrolatum, asphalt, bitumen, coke, lubricants refinery petroleum
fractions and include other petroleum designated products;
"petroleum services" means services provided by petroleum service providers and includes
petroleum importation, refining, storage, bulk distribution, marketing and sale of petroleum
products;
"petroleum service provider" means a person issued with a licence to operate in the petroleum
downstream industry and includes a new entrant or any other person authorised by the Board
to do so;
"prescribed petroleum pricing formula" means the formula which equates the ex-pump price to
the aggregate of the ex refinery price, taxes, levies and distribution margins;
"primary distribution margin" means the cost for the transportation of petroleum products from
the refinery or from the bulk supply point to the various storage depots nationwide;
"relevant institutions" means an institution which for the purposes of this Act needs to
collaborate with the Authority and includes the Ghana Standards Board and the Environmental
Protection Agency;
"refiner" means a person duly licensed to refine crude oil into petroleum products;
"reseller" means a person who is sponsored by a licensed oil marketing company to operate a
reseller outlet and is engaged in the direct sale of petroleum products to motorists, end users
and other consumers; and uses hand-operated or a mechanised pump to dispense the petroleum
products;
"reseller outlet" means the registered office of a reseller where petroleum services are offered;
"retail outlet" means the registered sales point of a dealer where petroleum services are offered
and includes a station;
"strategic storage depot" means a depot designated to hold stocks of petroleum products, and
is an integral part of a network of storage depots;
"Tanker Owners' Union" means an association of tanker owners engaged in the haulage and
distribution of petroleum products to retail outlets throughout the country;
"transporter" means a person engaged in the transportation, distribution, haulage and carriage
of petroleum products, in bulk or packed form, from the oil companies, refineries, and depots
to the petroleum retail and consumer outlet stations;
"UPPF" means the buffer used to compensate transporters for transporting petroleum products
nationwide;
"UPPF Management Committee" means Unified Petroleum Price Fund Management
Committee" established section 66; and
31

ing petroleum products
nationwide;
"UPPF Management Committee" means Unified Petroleum Price Fund Management
Committee" established section 66; and
31

"UPPF margin" means the cost incurred by a transporter in the haulage of petroleum products
from the depots to the retail outlets nationwide. Section 82—Modification of existing enactments
The provisions of an enactment of relevance to this Act and in force at the commencement of
this Act shall have effect subject to the modifications necessary to give effect to this Act and
to the extent that the provisions of an enactment are inconsistent with this Act, the provisions
of this Act shall prevail. Section 83—Repeals and consequential amendments
The provisions set out in column I of the Schedule to this Act are repealed or amended to the
extent specified in relation to them in column 2. Section 84—Saving and transitional provisions
(1) The Authority shall for purposes of this Act issue guidelines
(a) in accordance with the Public Procurement Act, 2003 (Act 663) for determination of
(i) inconclusive tender processes carried out by an administrative body responsible for that
(ii) tender processes carried out by oil marketing companies; and
(b) other transitional measures related to the implementation of this Act.

for that
(ii) tender processes carried out by oil marketing companies; and
(b) other transitional measures related to the implementation of this Act.

(2) A person who before the coming into force of this Act holds a valid licence to engage in a
business or commercial activity for the importation, exportation, refining, storage, bulk
transportation, marketing or sale of petroleum products shall within two weeks of the coming
into force of this Act, notify the Board of this fact. (3) The Board shall within two weeks of the receipt of the notification under subsection (2)
verify and certify the licence. (4) The total sum of money located in any bank immediately before the coming into force of
this Act which constitutes moneys intended for the Fund established under section 62 including
interest accrued on them, is hererby transferred into the Fund. (5) Any agreement entered into in conformity with an existing law shall remain in force and
shall not be affected by the coming into force of this Act.

5) Any agreement entered into in conformity with an existing law shall remain in force and
shall not be affected by the coming into force of this Act.

(6) The person holding office as co-ordinator immediately before the coming into force of this
Act and responsible for administering the payment and disbursement of moneys to oil
marketing companies shall perform functions in that regard in accordance with section 69 (1)
until the appointment of a co-ordinator in compliance with section 74. (7) A person appointed under the Energy Commission Act 1997, (Act 541) for purposes related
to petroleum product services, who is qualified and suitable for appointment to an office or
position in the Authority, may be appointed for the Authority on the recommendation of the
Minister. SCHEDULE
Section 86[sic]
32

tment to an office or
position in the Authority, may be appointed for the Authority on the recommendation of the
Minister. SCHEDULE
Section 86[sic]
32

Repeals and consequential amendments
Enactment Extent of repeal and amendment
1. The Petroleum Regulations, 1959 (LN.206) Parts II and III are repealed. 2. Petroleum (Amendment) Regulations, 1961 (L.I.123) Instrument revoked. 3. Petroleum (Bulk Haulage Rates) Regulations, 1968 L.I. 609 Instrument is revoked. 4. Ghana National Petroleum Corporation Law, 1983 (P.N.D.C.L. 64) Section 2 is
amended by the repeal of paragraph (d) of subsection (3). 5.

s revoked. 4. Ghana National Petroleum Corporation Law, 1983 (P.N.D.C.L. 64) Section 2 is
amended by the repeal of paragraph (d) of subsection (3). 5.

Energy Commission Act, 1997 (Act 541) (a) by the substitution for the long title of the
following
"AN ACT to establish an Energy Commission; provide for its functions relating to the
regulations, management, development and utilisation of energy resources in Ghana; provide
for the granting of licences for the transmission, wholesale supply, distribution and sale of
electricity and natural gas; and to provide for related matters.";
(b) Section 2 is amended as follows
(i) by the repeal of paragraph (b) of subsection (2) and the substitution of the following—
"(b) advise the Minister on national policies for the efficient economical and safe supply of
electricity and natural gas, having due regard to the national economy;
(ii) by the repeal of paragraph (h), (i) and (j);
(iii) by the repeal of paragraph (k) and the substitution of the following
"(k) maintain a register of public utilities";
(c) by the repeal of paragraph (b) of section 11;
(d) by the repeal of Part IV;
(e) Section 42 is amended by the repeal of paragraph (a) and the substitution of the following
"(a) promotion of energy efficiency and productive uses of electricity and natural gas";
(f) subsection (3) of section 44 is amended by the addition of the words, "except that this shall
be on the approval by the Minister of a budget presented by the Commission after the word
"Commission" on line 3;
(g) Section 51 is amended by the repeal of paragraph (c) of subsection (1) and the substitution
of the following
"(c) such other information relating to" public utilities.";
(h) Section 54 is amended by the repeal of paragraphs (b) and (d) of subsection (1);
(i) Section 56 is amended by the repeal of paragraph (b);
(j) Section 57 is amended as follows
33

repeal of paragraphs (b) and (d) of subsection (1);
(i) Section 56 is amended by the repeal of paragraph (b);
(j) Section 57 is amended as follows
33

(i) by the deletion of the definition of "bulk customer" and the substitution of the following
" "bulk customer" means a customer that purchases or receives electric power, or natural gas
of such amount or level as the Commissioner may specify";
(ii ) by the deletion of the following definitions
"crude oil",
"hydrocarbon fuels",
"lubricants",
"petroleum", and
"petroleum products". 6. Public Utilities Regulatory Commission Act, 1997 (Act 538).

"crude oil",
"hydrocarbon fuels",
"lubricants",
"petroleum", and
"petroleum products". 6. Public Utilities Regulatory Commission Act, 1997 (Act 538).

Section 49 is amended by
the substitution for the meaning of "public utility" and "service" of the following
""public utility" means a person engaged in the provision for a fee, whether directly of
indirectly, of the following services to the public:
(a) the supply, transmission or distribution of electricity;
(b) the supply, transmission or distribution of water;
(c) other public utility services excluding a service involving or related to a petroleum product,
that Commission shall by legislative instrument prescribe on recommendation of the Minister
with responsibility for the service";
" "service" includes the supplying or furnishing of a commodity other than a petroleum product,
derived directly from the business in which a public utility is engaged to the consumer and the
placing at the disposal of the consumer the facilities employed in or connected with the supply
of that commodity;". Date of Gazette Notification: 14th June, 2005
34