The National Petroleum Authority (NPA) has suspended the approval given to Chinese company, Sentuo Oil Refinery to sell some finished petroleum products on the market as a result of substandard quality.
The NPA in a statement released later yesterday, explained that it was incorrect and alarmist for the IES and COPEC to allege that the “out-of-specification products are reported as causing damage to vehicles and machinery.”
“No such damage to vehicles has occurred as the defect has to do with high vapour pressure,” it added.
The action is specifically targeted at some finished petroleum products, with concerns that they did not meet industry specifications.
According to the NPA, it took action last week, after its investigations revealed that Sentuo Oil Refinery, ended up selling petrol slightly higher than what was originally approved.
The reaction by the NPA, follows allegations by two energy think tanks, the Institute of Energy Security (IES) and the Chamber of Petroleum Consumers (COPEC) that the authority, had allowed Sentuo Oil Refinery to sell sub-standard fuel to some Oil Marketing Companies, resulting in serious damage to the engine of vehicles.
The Association of Oil Marketing Companies (AOMC) had also asked the NPA to address issues concerning the quality of some petroleum products supplied by Sentuo Oil Refinery.
Yesterday, COPEC and the Institute for Energy Security (IES) asked the NPA to halt the operations of the recently inaugurated Chinese Oil Refinery due to alleged illegal activities.
In a statement, COPEC and IES, expressed concerns about the refinery’s operations without the necessary permit from the NPA, and the alleged supply of substandard fuel to the Ghanaian public.
The statement, further explained that, as per the NPA Act 2005, all entities engaged in commercial activities in the downstream sector of the industry are required to obtain a permit from the board before operation.
Despite this, COPEC and IES, maintain that Sentuo, has failed to secure the necessary permits for oil processing and trading.
Ubeidalah Saed, the Head of Quality Control at the NPA, revealed in an interview on Citi FM yesterday that, the NPA is currently assessing the products supplied to various filling stations.
He also mentioned that the NPA is in discussions with the Refinery to determine the next steps.
“We are still having discussions with them as to what really led to that because the normal modus operandi of the NPA Quality Assurance system is that we grant you approval based on the values of the certificate then we follow up physically just to do a random check just to ascertain that indeed the purported quality on the paper I what it is.”
“We have suspended the sale of that particular product…Particularly we are looking at all the filling stations that have been affected. We will be able to get the total outlook and come and make a very meaningful conclusion.”
Ubeidalah Saeed, explained that the products did not meet the required standards and specifications, adding that the situation is not a case of unwholesome products but a case of the products not meeting the required specifications.
“This is not due to the fact that the products were unwholesome but rather, the pressure, is two points higher than maximum requirement”, he stressed.
He added that the situation was compounded by the fact that pressures are mixed at the OMCs and this sometimes delay in checking the specification.
“…because products are co-mingled at the retail outlet at point, where the pressures were low at these services stations resulting in this challenge”, he said.
He assured that strict measures have been put in place to check the system to avert the situation where such products will hit the market.
“We have now reviewed the monitoring regime, and going forward, we will be counter-testing all the quality certificates that will be sent to NPA from Sentuo Oil refinery” he added.
The AOMC in a statement asking the NPA to address issues concerning the quality of some petroleum products supplied by Sentuo Oil Refinery explained that some of the member companies have raised alarm about the quality and viscosity of some products from the oil refinery company.
“The complaints situate the inability of their petroleum service station pumps to efficiently dispense Sentuo products as well as other quality issues resulting in a significant number of customer complaints effective February 1, 2024”, a statement from the AOMC said.
The statement stressed that the reliability and quality of petroleum products are of utmost importance to the oil industry and consumers.
“The reported issues at Sentuo Oil Refinery have the potential to not only affect the operational efficiency of oil marketing companies but also negatively impact customer satisfaction”.
“Our members have conducted meticulous inquiries and concluded that no internal malfunctions or procedural errors are to blame for this matter for this matter. Therefore we firmly believe that the root cause of this concern lies with the products supplied by the Sentuo Oil Refinery and BEST Kumasi Depot”, the statement said.
On the way forward, the association urged the NPA to conduct a thorough inspection of the company’s refining processes and quality control measures to ensure adherence to industry standards.
It added that there is the need to review complaints received and take appropriate action against the refinery, if necessary to maintain the integrity of the petroleum supply chain.
“Collaborate with oil marketing companies to identify specific areas of concerns and develop strategies to mitigate the impact of the reported issues.”
“Publicly communicate the findings of the investigation and any actions taken to address the situation to enhance transparency and restore confidence in the industry”, the association appealed to the regulator.
