The Premix Fuel sector, once a cornerstone of Ghana’s fishing industry, has become a symbol of inefficiency and systemic failure. For years, fisherfolk across the country have struggled with erratic fuel supplies, largely due to mismanagement, subsidy debts, and monopolistic practices.
Senanu F. Dekutse, a seasoned expert in the downstream petroleum sector, has called for sweeping reforms to address these entrenched issues. His proposals aim to tackle the root causes of the sector’s failures, offering a roadmap to ensure sustainability and resilience in Ghana’s fishing industry.
Addressing the Root Causes
1. Subsidy Challenges and the Need for Reform
The government’s inability to pay under-recoveries (subsidies) to Bulk Distribution Companies (BDCs) has created a crisis in the Premix Fuel supply chain. These debts have caused frequent shortages, with some BDCs outright refusing to blend fuel.
Dekutse recommends a reduction in subsidies from the current 50% to 25%, or even their complete removal, to ease the financial burden on the government. He emphasizes the need for alternative mechanisms, such as targeted support programs for fisherfolk, to ensure affordability without relying on subsidies that often lead to inefficiencies.
2. Breaking the Monopoly of Tema Oil Refinery (TOR)
For years, the Tema Oil Refinery has been the sole producer of Premix Fuel, a policy that has led to operational inefficiencies and supply bottlenecks. Dekutse argues that this monopoly has stifled competition, driving up costs and contributing to shortages.
His solution is to open the market to private refineries and major BDCs, allowing them to blend or import Premix Fuel under the supervision of the National Petroleum Authority (NPA). This move would enhance competition, improve efficiency, and ensure a steady supply of fuel to the fishing industry.
3. Overhauling Distribution Networks
The distribution of Premix Fuel has been marred by corruption and inefficiencies, with reports of ghost landing beaches and middlemen diverting supplies. These practices have deprived fisherfolk of the resources they need, undermining the sector’s productivity.
Dekutse proposes the implementation of a transparent monitoring system to eliminate leakages and ensure that fuel reaches legitimate landing beaches. By focusing on accountability, this reform would restore trust in the system and create a fairer playing field for all stakeholders.
A Path Forward
Senanu Dekutse’s proposals represent a comprehensive approach to addressing the systemic failures in the Premix Fuel sector. By reforming subsidies, introducing competition, and improving distribution networks, these changes promise to restore efficiency and sustainability to the sector.
For Hon. Emelia Arthur, the newly appointed Minister of Fisheries and Aquaculture, these recommendations offer an opportunity to leave a lasting legacy. With decisive action, the Ministry can break the cycle of shortages and set the fishing industry on a path to long-term success.
The time for change is now, and the future of Ghana’s fishing industry depends on it.