National Petroleum Authority, Ghana

Requirement for license

1.

• A person shall not engage in a business or commercial activity in the downstream industry unless that person has been granted a license for that purpose by the Authority’s board.
• The business or commercial activities of the downstream industry in respect of crude oil, gasoline, diesel, liquefied petroleum gas, kerosene and other designated petroleum products are
  • Importation
  • Exportation
  • Re-exportation
  • Shipment
  • Transportation
  • Processing
  • Refining
  • Storage
  • Distribution
  • Marketing, and
  • Sale.

Qualification for license
2. A license under the Act may only be granted to

• A citizen of Ghana; or
• A body corporate registered under the Companies Code, 1963 (Act 179) or
• A partnership registered under the Incorporated Private Partnerships Act, 1962 (Act 152); or
• A foreign individual or foreign company in a registered joint venture relationship with a citizen of Ghana or a Ghanaian company.

Application for license
3.Procedure:

• A person may apply to the Authority’s board for license in the manner determined by the Authority’s board with the prescribed fee.
• The Authority’s board, within thirty working days of the receipt of an application, acknowledge receipt and inform the applicant in writing of the decision of the Authority.
• The Authority’s board 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 licenses established in the Act.

Conditions of license
4.

• A license shall not be granted to an applicant unless the applicant has complied with any other requirement specified by the Authority’s board and any other relevant enactment.
• A license granted by the Authority’s board is subject to the conditions specified in the license.
• The Authority’s board may request from the applicant where necessary,
  • A clearance certificate or an appropriate permit from the Environmental Protection Agency and Ghana Standards Board;
  • Evidence of
    • Financial viability for the ownership or operation of the business or commercial activity,
    • Adequate training, qualification and experience to engage in the business or commercial activity in accordance with the Act, and
    • Other requirements in the manner and at the times the Authority’s board may determine.

Issue and renewal of license
5.

• Where an applicant meets the conditions required by the Act for a license to engage in a business or a commercial activity in the petroleum downstream industry, the Authority’s board shall approve the application and issue the applicant with the license.
• Despite (1) above, the Authority’s board may for reasons in the public interest, public safety or public security decide not to issue an applicant with a license and shall inform the applicant of its decision in accordance with (1) above.
• A license issued is valid for the period specified on it and may be renewed upon satisfying all the conditions for renewal as specified in the license.
• An application for the renewal of a license shall be made to the Authority’s board not later than sixty days prior to its expiry and in the manner determined by the Authority’s board.
• The applicant who seeks to renew a license shall pay the prescribed fee prior to the issue of the license.

Display of license
6.A license issued under the Act shall be conspicuously exhibited by the licensee in a prominent place on the business premises of the licensee

Non transferability of license
7.A person issued with the license shall not transfer that license to another person without the prior approval of the Authority’s board.

The circumstance under Revocation, suspension and refusal to renew license are:
8.The Authority’s board may revoke, suspend or refuse to renew a license issued under the Act where

• the provisions of the Act of the Regulations are not being satisfactorily complied with,
• the continued operation of a business or commercial activity poses a risk to public health, safety and security,
• the services provided by the licensee have deteriorated below the required standard,
• the licensee has not complied with any of the conditions of the license,
• an offence under the Act in relation to the licensee is being investigated,
• The person has contravened but has not been convicted of a provision of the Act.

Notice of revocation, suspension or refusal to issue or renew license.
9.

• where the Authority’s board intends to revoke, suspend or refuse to issue or renew a license under the Act, the Authority shall give the applicant or licensee
  • thirty days prior notice of the revocation, suspension or the intention to refuse to issue or renew the license,
  • reasons for the intention to revoke, suspend or refusal to issue or renew the license, and
  • An opportunity to make an oral or written representation to the Authority’s board.
• An applicant or person who receives a notice may make a representation to the Authority’s board within fifteen working days from the date of receipt of the notice.
• The Authority’s board shall within three months after the representation take a decision on the representation and inform the applicant or licensee.
• The Authority’s board shall as soon as practicable inform the Minister in writing of any decision it takes on a representation.

Refinery license
10.where the Authority’s board grants a license to an applicant to operate a refinery for the supply of petroleum products; it shall authorize the licensee

• to convert crude oil into petroleum products for sale without discrimination to
  • bulk customers of petroleum products, and
  • a person licensed under the Act to market petroleum products, and
• To obtain approval of the Authority’s board for charges of services rendered.

Storage depots for petroleum products
11.

• 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.
• The Authority’s board shall by publication in the Gazette designate operational storage depots for petroleum products.

Operation of storage depots for petroleum products
12.

• Where the Authority’s board grants a license to an applicant to operate nationwide a network of storage depots for the storage and trans-shipment of petroleum products, it shall authorize the person to provide services for storage and trans-shipment of petroleum products to bulk consumers and persons licensed under the Act to market petroleum products.
• The Authority’s board shall grant only one license to a person for the operation of network of storage depots for the storage and trans-shipment of petroleum products at any particular time in the country.
• A person granted a license for this purpose shall be known as the operator of storage depots for petroleum products.

Conditions for license as operator of storage depots for petroleum products
13.Where the Authority’s board grants a license to an applicant for the operation of storage depots for petroleum products, the following conditions are applicable for purposes of compliance;

• 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
• The approval of the Authority’s board for charges for services rendered.

Bulk transportation of petroleum products
14.Where the Authority’s board grants a license to an applicant for the bulk transportation of petroleum products through a means that the Authority’s board may determine, the Authority’s board shall include a condition that

• the person enters into an agreement to provide services without discrimination to its customers, and
• the charge for the bulk transportation of petroleum products
  • through pipeline systems,
  • by barges,
  • By rail tanker wagons and bulk road vehicles shall be subject to the approval of the Authority’s board.

Petroleum products marketing license
15.Where the Authority’s board grants a license to an applicant to procure and sell petroleum products the license shall authorize the person to procure and sell petroleum products to

• bulk customers; and
• To the public through retail stations or seller outlets.

Construction of petroleum depots
16.A person shall not conduct or operate in the petroleum downstream industry

• a petroleum products retail station,
• a petroleum products storage depot and pipeline,
• a liquefied petroleum gas depot, or
• an oil refinery

Without the prior written authorization of the Authority’s board.

Display of prices on dispensing units
17.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.

Prohibition to sell petroleum products

18.

• A person, other than a person licensed under the Act, shall not
  • sell or offer for sale a petroleum product, or
  • be in possession of a petroleum product in quantities unreasonably in excess of that person’s immediate requirement, or
  • Receive a petroleum product for sale.
• The above does not apply to petty trading in kerosene.