The National Petroleum Authority (NPA) has ordered Sentuo Oil Refinery Limited to stop what it describes as unfair and discriminatory arrangements in the marketing of petroleum products, amid growing concerns over non-delivery of prepaid products and contractual disputes in Ghana’s downstream petroleum sector.
In a notice dated August 18, 2026, the NPA said licensed Bulk Import, Distribution and Export Companies (BIDECs) seeking petroleum products from Sentuo were effectively being compelled to transact through a designated intermediary.
The Authority said it had received reports that the intermediary repeatedly failed to honour contracts with licensed petroleum service providers, resulting in non-delivery of products, locked-up funds and disruption to downstream trading.
This also substantially disrupt or affect the banking sector in terms of their transactions with the BDCs.
The intermediary at the centre of the concerns is Mohamed Raii, a Lebanese national described by industry sources as operating in concert with Sentuo. According to the allegations, Raii sources a significant volume of bulk petroleum products from Sentuo and subsequently resells them independently on terms he determines, effectively creating an intermediary layer between the refinery and downstream distributors.
The distribution chain also fingered AXSOR as the source being used by Raii as a distribution point for petroleum products supplied from the refinery.
The arrangement, according to industry sources, has raised concerns among some downstream operators who believe it gives the intermediary considerable control over access to refinery products and the terms on which those products reach licensed buyers.
Sources further allege that Raii has sought to project himself as highly connected, claiming access to senior government officials and asserting that National Security and the police are at his beck and call.
Citing 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 access refinery products.
Sentuo was also ordered to ensure fair, transparent and non-discriminatory access to its products.
In a related development, allegations are rife that the activities of Mr. Raii who had barely been in that business space for just eight months and yet commands so much appears to border on money laundering.
To that extent, the NPA may have done it’s part hoping the security agencies will take the matter up.
CBOD RAISES WIDER SECTOR CONCERNS
The NPA action comes against the backdrop of a wider warning from the Chamber of Bulk Oil Distributors (CBOD) over practices among Petroleum Service Providers (PSPs) resulting in the non-delivery of contractual and prepaid petroleum products.
The Chamber said the cases involve BIDECs, refineries, Oil Marketing Companies (OMCs) and intermediaries, with funds being locked up and normal business activities disrupted.
According to the CBOD, some PSPs have failed to deliver petroleum products that had already been purchased and prepaid for, with some disputes escalating into litigation.
The Chamber warned that such developments could trigger supply disruptions, expose businesses to significant financial risks and undermine confidence in the downstream petroleum market.
It has urged members affected by such cases to report them to the Chamber to facilitate engagement and possible amicable resolution.
SENTUO LICENCE AT RISK
More significantly, the NPA notice raises the possibility of regulatory action against Sentuo itself.
The Authority cited Section 18 of Act 691, 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 seven working days from the date of the notice to confirm that the practice has ceased, outline measures to guarantee fair and transparent access to its products, and show cause why proceedings should not commence to suspend or revoke its licence under Sections 18 and 19 of Act 691.
The Authority warned that failure to respond satisfactorily and regularise the situation could result in regulatory action.
The development places the spotlight not only on Sentuo but also on the growing role of intermediaries and distribution arrangements in Ghana’s downstream petroleum market.
With the NPA now demanding direct, fair and transparent access to refinery products, the dispute could have wider implications for how petroleum products are allocated, sold and distributed to licensed operators.
The notice was signed by NPA Chief Executive Godwin Kudzo Tameklo and copied to the Minister for Energy and Green Transition, the CBOD, the Chamber of Oil Marketing Companies and relevant NPA departments
