The Bulk Road Vehicle (Tanker) Drivers Union has halted the distribution of petroleum products across the country, affecting both depot-to-depot and depot-to-retail outlet deliveries. The strike is a result of unresolved disagreements with employers over the implementation of welfare resolutions established by stakeholders in the petroleum distribution sector.
The Centre for Energy, Markets, and Sustainable Environment (CEMSE) has conducted a thorough review of the Union’s demands compared to current industry practices, revealing significant issues. Some transport owners and Oil Marketing Companies (OMCs) pay their drivers more than GHC 10,000 per month, while others pay as low as GHC 1,700 per month, highlighting an unfair discrepancy that penalizes companies already compensating their drivers adequately.
The National Petroleum Authority (NPA) had increased the Unified Petroleum Price Fund (UPPF) to 85 pesewas per liter to address drivers’ needs. However, only 47 pesewas are currently being disbursed to OMCs and transport companies, which is insufficient for many smaller companies to offer competitive wages. The NPA has not justified retaining the remaining 38 pesewas.
Neither the NPA nor the Labour Commission has enforced a compensation regime ensuring compliance with Section 68 of the Labour Act, which mandates fair employee compensation. Additionally, the NPA’s promise to deduct GHC 1,700 from the UPPF for direct driver payments has not been fulfilled, significantly contributing to the strike. The Association of Oil Marketing Companies opposes direct payments from the UPPF to drivers, arguing that the NPA, not being the direct employer, should not initiate such payments.
To resolve the crisis, CEMSE recommends that the NPA fully disburse the 85 pesewas from the UPPF to transporters, enhancing the revenues of smaller companies and ultimately benefiting tanker drivers. The NPA, Labour Commission, and Trade Union Congress should collaboratively establish and enforce a compensation framework in line with the Labour Act, ensuring fair and consistent remuneration for all drivers in the petroleum downstream sector.
Furthermore, transport companies that fail to comply with the new payment framework should face penalties, including potential revocation of their transport licenses by the NPA for poor employee remuneration.
Immediate action by the NPA and regulatory bodies is crucial to resolving the current disruption and ensuring stable petroleum distribution across the country. CEMSE urges all stakeholders to collaborate in implementing these recommendations to restore industry stability.
Below is the full statement:
NPA MUST PAY IN FULL THE UNIFIED PETROLEUM PRICE FUND ON THE PRICE- Build-UP TO TRANSPORTERS
The attention of CEMSE has been drawn to media reports that Bulk Road Vehicle (Tanker) Drivers Union have halted the distribution of petroleum products across the country, either from depots to depots or depots to retail outlets (filling stations). According to the reports, the Union is on strike because of some disagreements with their employers about an implementation of welfare resolutions made by stakeholders in the distribution of petroleum products.
A careful review of the demands of the Union and comparing it to what is currently happening in the industry reveals the following;
1. Some Transport Owners and Oil Marketing Companies pay their drivers more than Ghc10,000 per month and others pay as low as Ghc1700 per month. The strike action is unfair to Transport Companies and OMCs that pay their drivers well.
2. The Unified Petroleum Price Fund has been increased to 85 pesewas by the National Petroleum Authority to cater for the needs of the drivers yet the allocation to the drivers have not been made to the transport owners nor Oil Marketing Companies. The National Petroleum Authority pays the OMCs 47 pesewas out of the 85 pesewas they collect from petroleum consumers. The 47 pesewas allocated to transport companies is inadequate to cover the cost of some of the smaller transport companies, thereby affecting their ability to pay their drivers well. They NPA has increased UPPF from 47 pesewas to 85 pesewas yet continues to pay only 47 pesewas to transporters without any justification for keeping the 38 pesewas.
3. The NPA and the labour commission do not have a sanctioned regime for OMCs and Transport owners that fail to compensate their employees base on the section 68 of the Labour Act.
4. The NPA promised to deduct some amount of Ghc1700 from the UPPF and pay directly to the drivers yet that has not been done, which is one of the main reasons why the drivers are on strike.
5. The Association of Oil Marketing Companies are kicking against the direct payment of drivers from their UPPF because they believe NPA is not the direct employer of these drivers and for that matter could not initiate direct payments to these drivers on their behalf.
Recommendations:
1. The NPA must fully pay the UPPF amount of 85 pesewas to transporters. Such an action will improve the revenues of smaller transporters which eventually benefits tanker drivers.
2. The NPA and Labour commission as well as the Trade Union Congress must develop a compensation framework in consultation with Transport Owners and Marketers for all the drivers in the petroleum downstream in line with the Labour Act (Act 651, section 68), and must enforce this framework fully to the benefits and interests of all parties.
3. The NPA, Labour commission must penalize transport companies that fail to comply with the new payment framework for the industry. NPA should use poor remuneration of employees as ground to terminate or revoke the transport licenses of non complying companies
Authored by
Benjamin Nsiah
Executive Director
Centre for Environmental Management and Sustainable Energy
