Duncan Amoah
Executive Director of the Chamber of Petroleum Consumers Ghana (COPEC), Duncan Amoah, has urged stakeholders to stop politicising the operations of Strategic Mobilisation Ghana Limited (SML) and instead focus on the company’s revenue generation for the country.
The statement by Mr. Amoah was in response to the National Democratic Congress (NDC)’s call for the immediate termination of ‘illegal contracts’ entered into between Strategic Mobilisation Ghana Limited and the Ghana Revenue Authority (GRA).
Speaking at the 5th anniversary celebration of SML in Accra, Mr. Amoah said the company’s efforts have significantly enhanced revenue collection for the GRA, citing a notable increase in reported volumes in the downstream petroleum sector.
He stated that according to the GRA, SML’s introduction has led to a 33% increase in volume reporting, resulting in an extra GH¢3 billion in revenue over two years.
He further added that with the revenue achievement of SML over the years, politicisation of their operations stands a chance of affecting their revenue generation for the state.
Mr. Duncan urged Ghanaians to focus on “bread and butter issues” now that elections are over, and support companies like SML that offer value to the Ghanaian society. He emphasised that SML’s role in ensuring accurate tax assessments is crucial, particularly in the upstream petroleum sector where problems similar to those in the downstream sector exist.
He further commended SML for their impact on revenue collection, and urged the government to support their efforts to ensure transparency and accountability in the extractive sector.
SML Support Service Director, Dr. Yaa Serwaa Sarpong, stated that the company has increased state tax revenue between May 2020 and December 2024 by tracking and recovering excess volume discrepancies totaling approximately 14.1 billion litres, translating to over GH¢20.3 billion in additional tax revenue.
She noted that this feat was achieved as a result of the company’s innovativeness through the use of the Electronic Metering Management System (EMMS) and other initiatives, which have been instrumental in generating additional tax revenue, particularly in the petroleum sector.
Since the implementation of the EMMS, over 14.1 billion litres of petroleum products have been tracked, leading to additional GH¢20.3 billion in tax revenue for the state. This is due to the system’s ability to ensure accurate volume reporting and reduce discrepancies in the sector.
Dr. Sarpong added that the collaboration between SML and the GRA has significantly improved revenue collection in the downstream petroleum sector, stating that the discrepancy between National Petroleum Authority (NPA) and GRA recordings has narrowed from 3.2 billion litres to 260 million litres, resulting in increased tax revenue.
“Before SML’s engagement, Ghana lost approximately GH¢4.6 billion in revenue over 16 months. After SML’s introduction, this loss was reduced to GH¢375 million. The monthly benchmark for GRA increased from 208 million litres (translated to GH¢299 million) to over 450 million litres, more than doubling revenues to GH¢664.8 million per month. From June 2020 to December 2024, SML’s efforts have led to an additional 14.1 billion litres of recorded volume, generating GH¢20.3 billion in tax revenue,” she added.
Dr. Sarpong stated that the success of SML’s work in the downstream petroleum sector is attributed to a collaborative effort among key stakeholders, including GRA, NPA, depot operators, technical and financial partners, and the SML team, adding that this shared commitment to accountability has significantly contributed to the remarkable outcomes.
“SML’s innovative solution has not only improved revenue collection but also helped close critical revenue leakage gaps that were becoming a national security threat. The impact of SML’s work has proven to be forward-thinking and ahead of its time, with the potential to be replicated in other sectors, such as mining and upstream oil and gas,” she said.
BY Prince Fiifi Yorke