Government to Crack Down on Fuel Smuggling With New Petroleum Distribution Measures
Finance Minister Dr. Cassiel Ato Forson announces bank guarantees, electronic tracking, and removal of bunkering tax exemptions to curb fuel smuggling.
- Mandatory bank guarantees enforced for companies lifting refined petroleum products.
- Product movement restricted to approved pipelines and monitored via electronic tracking systems.
- Elimination of tax exemptions on bunkering services to prevent abuse and plug revenue losses.
The government has introduced sweeping regulatory reforms to tighten controls across the downstream petroleum sector, aiming to curb fuel smuggling, eliminate revenue leakages, and improve compliance.
Presenting the 2026 Mid-Year Budget Review in Parliament, Finance Minister Dr. Cassiel Ato Forson stressed that vulnerabilities within the petroleum distribution chain continue to drain state revenues through product diversion, under-declaration, and illegal bunkering.
“Consequently, petroleum products become vulnerable to diversion, under-declaration and smuggling. This economy can no longer afford these leakages,” Dr. Forson stated.
Key Distribution and Tax Reforms
To tackle illicit activities, the government is rolling out targeted enforcement and monitoring mechanisms:
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Bank Guarantees: Strict enforcement of statutory bank guarantee requirements for companies before lifting refined petroleum products.
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Electronic Tracking & Approved Routes: Restricting product transportation exclusively to approved pipelines and electronically tracked distribution systems.
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Bunkering Tax Adjustments: Removing tax exemptions on bunkering services to align with international standards, curb smuggling, and safeguard state revenues.
The comprehensive measures form a core pillar of the government’s strategy to reinforce domestic revenue mobilization and transparency across national supply chains.
