Funtions of NPA
There are four divisions within NPA that execute the core functions of the Authority. The divisions are: Inspection, Monitoring and Licesnsing (IML), Pricing, Planning and Research (PPR), the Unified Petroleum Price Fund (UPPF) and the Petroleum Product Marking Scheme (PPMS).
The IML department (as the name implies) is responsible for issuing licenses to PSPs, monitoring of the operations of PSPs and inspecting facilities of PSPs in the downstream industry.
The IML department also ensures that the design, construction and operation of all petroleum infrastructure are executed to predetermined standards. Additionally, the department ensures that consumers receive high quality fuel that is safe, efficient and value for money.
PPR monitors the supply and consumption of petroleum products around the country to ensure that there are adequate stocks of petroleum products to meet the consumption needs of the country. This is done through planning and monitoring the activities and performance statistics of bulk distribution companies (BDCs) and oil marketing companies (OMCs) in the distribution of petroleum products accross the country.
The object of PPR's function is to protect the interests of consumers, promote fair competition amongst petroleum service providers and ensure that the indsutry is efficient and profitable. The team also conduct studies relating to economy, efficiency and effectiveness of the downstream sector of the petroleum Industry.
its mandate is to compute the ceilings of the Ex-Refinery ad Ex-pump prices of petroleum products, and all resultant costs/revenue to the government and the petroleum service providers (PSPs) based on tthe prescribed petroleum pricing formula.
Petroleum product prices are established within a period called the pricing window, which is currently two weeks. The unit also engages key stakeholders on petroleum prcies ceiling as well as all price related information to applicable stakeholders in the industry.
In the normal scheme of pricing petroleum products, the distance between the storage depot and the retail outlet determines the price per litre.
This is very common in most part of the world. However in Ghana, fuel prices for ll OMCs are the same irrespective of which part of Ghana you live - that which makes this possible is the UPPF.
The UPPF ensures that the unified prices of petroleum products include as element representing as near as possible the actual cost of distribution.
The UPPF sees to it that petroleum products reach the consumer wherever they live in Ghana efficiently and that fuel is transported throughout the country in a manner that is simple, effective and inexpensive to operate administratively.
The Petroleum Product Marking Scheme provides a foundation for an effective quality monitoring systems by:
- Offering consumer quality assurance and protection for products at the final dispensing outlet.
- Checking/controlling malpractices that result in loss of government revenue and a secondary effect of interfering with product quality.
- Increased tax base & revenue
- Reduced smuggling
- Fair business competition
Fuel Marking is the introduction of a unique identifier (bio-chemical liquid) in trace quantities into petroleum products at depots before distribution unto the market. The marker creates "finger print" and provides a secure, tamper-proof method of authentication. Marked fuel can be distinguished from unmarked fuel through a process of testing using specialized detecting equipment (LSX2000 and MSX1000).
The purpose of PPMS is to;
- Preserve and Protect the quality and purity of petroleum products.
- Detect and prevent the adulteration of petroleum products.
- Monitor the quality and purity of petroleum products.
The implementation of the PPMS is as a result of NPA's objective of ensuring that the industry continues to be efficient and profitable whilst consumers are satisfied.