The Africa Centre for Energy Policy has called for greater scrutiny of Ghana’s petroleum pricing margins after an Auditor-General’s performance audit recorded a GH¢2.05 billion UPPF surplus over the period reviewed.
According to figures cited by ACEP, the Unified Petroleum Pricing Fund received GH¢13.22 billion while expenditure reached GH¢11.17 billion, leaving a difference of GH¢2.05 billion.
The Ghana Audit Service has published a performance audit of the operations of the National Petroleum Authority, examining aspects of the regulator’s management of Ghana’s downstream petroleum system.
ACEP stressed that the difference does not, by itself, establish misappropriation or corruption. Its concern is that consumers who financed the fund through petroleum prices deserve a clear account of what happened to the accumulated balance.
ACEP Wants Breakdown of Fund Spending
ACEP Policy Lead Kodzo Yaotse said the think tank has struggled to obtain detailed information on how the fund is managed.
“We have tried countless times to get a certain breakdown on how the fund is managed,” he said during a media training workshop on the Auditor-General’s performance audit of the NPA.
The UPPF is primarily designed to equalise petroleum transportation costs so that consumers in areas farther from major supply points do not pay substantially higher prices simply because of location.
ACEP, however, said the margin charged to consumers increased from 22 pesewas per litre in 2018 to 90 pesewas in 2024.
That growth has prompted questions over whether the current margin still reflects the actual cost of transporting petroleum products.
‘Why Charge It Under Transporting Commodities?’
Mr Yaotse also questioned expenditure charged against the fund that ACEP believes should ordinarily pass through the national budget.
“If government wants money to buy fuel for security agencies, there are appropriate mechanisms which is passed into the budget.
“But why do you ask your regulator to charge certain costs under the guise of transporting commodities?” - Mr Yaotse
His argument centres on the different levels of parliamentary scrutiny applied to petroleum levies and regulatory margins.
ACEP estimates that regulatory margins embedded in petroleum prices generate about GH¢7.6 billion annually, compared with approximately GH¢9.7 billion from petroleum levies.
Both are ultimately reflected in what consumers pay at the pump, but their approval and accountability structures differ.
Surplus Does Not Automatically Mean Wrongdoing
A financial surplus can arise for legitimate reasons, including delayed obligations, planned future expenditure or the need to maintain a reserve.
ACEP’s position is that the scale of the UPPF collections now requires stronger disclosure.
The organisation wants a reconciliation showing how the GH¢13.22 billion in receipts translated into GH¢11.17 billion in expenditure, where the remaining funds were held and whether they were subsequently used.
It is also seeking greater transparency around procurement and the companies benefiting from contracts financed through petroleum pricing margins.
Equalisation Policy Also Comes Under Scrutiny
ACEP has questioned the broader economic rationale for maintaining uniform petroleum prices across Ghana.
“Why should my consumption subsidise their consumption?” Mr Yaotse asked, referring to the cross subsidy between consumers located close to fuel supply centres and those farther away.
Removing equalisation, however, could expose rural and remote communities to significantly higher fuel prices because of transportation costs.
The policy question is therefore not simply whether cross subsidisation should exist, but whether the amount collected is justified by verified transport costs and whether spending remains tied to the fund’s intended purpose.
With small per litre charges now accumulating into billions of cedis, ACEP argues that petroleum pricing margins should face stronger disclosure and oversight.
The Auditor-General’s findings, in that context, raise questions for further examination rather than proving wrongdoing.
READ ALSO: 2027 Budget to Fund Grain Silos as Ghana Records 1m-Tonne Maize Surplus
