The National Petroleum Authority (NPA) in Ghana has directed Sentuo Oil Refinery Limited to immediately stop what it describes as unfair and discriminatory arrangements in the marketing of petroleum products.
The directive follows complaints from licensed Bulk Import, Distribution and Export Companies (BIDECs) in the country over the non-delivery of prepaid petroleum products, contractual disputes and the involvement of intermediaries in accessing products from the refinery.
In a notice dated August 18, 2026, the NPA said it had received reports that licensed BIDECs seeking to purchase petroleum products from Sentuo were, in effect, being required to transact through a particular intermediary.
According to the Authority, the intermediary had repeatedly failed to honour contracts with licensed petroleum service providers, resulting in the non-delivery of products, funds being locked up and disruptions to downstream petroleum trading.
The NPA further warned that the situation could have implications for financial institutions and their transactions with affected Bulk Distribution Companies, particularly where significant amounts of money remain tied up in disputed transactions.
The intermediary identified in complaints from industry players is Mohamed Raii, a Lebanese national who, according to industry sources, operates in connection with Sentuo.
Allegations made by some operators are that Raii sources substantial volumes of petroleum products from the refinery and subsequently resells them independently, determining the terms under which the products are supplied to downstream players.
AXSOR has also been mentioned by industry sources as a distribution point through which petroleum products supplied from the refinery are allegedly channelled by Raii.
Some downstream operators have expressed concern that the arrangement could give the intermediary significant influence over access to refinery products and the terms offered to licensed buyers.
There are also allegations that Raii has portrayed himself as having strong connections to senior government officials and access to the National Security and the police.
These claims have not been independently established.
Relying on Sections 24 and 40 of the National Petroleum Authority Act, 2005 (Act 691), the NPA directed Sentuo to stop requiring, or effectively making, licensed petroleum service providers dependent on a particular intermediary to gain access to its products.
Sentuo has also been instructed to ensure that petroleum products from the refinery are made available to licensed operators on a fair, transparent and non-discriminatory basis.
The development has raised wider questions about the activities of intermediaries within Ghana’s downstream petroleum supply chain, with concerns over whether some transactions associated with the arrangement may require further examination by relevant financial and security agencies, including possible scrutiny for money-laundering risks.
The NPA’s intervention comes amid broader concerns raised by the Chamber of Bulk Oil Distributors (CBOD) about the failure of some Petroleum Service Providers (PSPs) to deliver petroleum products that have already been purchased and paid for.
According to the Chamber, some of the disputes involve BIDECs, refineries, Oil Marketing Companies (OMCs) and intermediaries.
In certain cases, businesses have reportedly been left with substantial sums of money tied up while contractual disagreements have escalated into litigation.
CBOD has warned that such disputes could disrupt the supply of petroleum products, expose businesses to significant financial losses and undermine confidence in Ghana’s downstream petroleum market.
The Chamber has therefore encouraged members affected by such cases to report them so it can engage the parties involved and explore opportunities for an amicable resolution.
The NPA’s notice goes beyond directing Sentuo to change its business practices.
It also raises the possibility of regulatory action against the refinery.
The Authority cited Section 18 of the National Petroleum Authority Act, which empowers the NPA Board to suspend, revoke or refuse to renew a licence where a licensee fails to comply with regulatory requirements.
The NPA said it was considering whether Sentuo remained fit to operate under its refinery licence, given the seriousness and recurrence of the concerns raised.
Sentuo has been given seven working days from the date of the notice to confirm that the disputed practice has stopped, outline measures to guarantee fair and transparent access to its products, and show cause why proceedings should not be initiated to suspend or revoke its licence.
The Authority warned that failure to provide a satisfactory response and regularise the situation could trigger further regulatory action.
The matter therefore puts the spotlight not only on Sentuo but also on the growing role and influence of intermediaries in Ghana’s downstream petroleum industry.
The NPA’s insistence on direct, fair and transparent access to refinery products could have wider implications for how petroleum products are allocated, sold and distributed to licensed operators.
The notice was signed by the NPA Chief Executive, Godwin Kudzo Tameklo, and copied to the Minister for Energy and Green Transition, the Chamber of Bulk Oil Distributors, the Chamber of Oil Marketing Companies and relevant departments of the NPA.
