Premix fuel subsidies hits GHS 1.9bn in nine years
The subsidies, which are defined as the difference between the price per liter of fuel paid by artisanal fishers and the actual price they should have paid, have been identified as capacity-enhancing subsidies for Ghana’s marine artisanal fisheries.
Government has spent a total of GH₵1.4 billion (GH₵1,469,355,332) on premix fuel subsidies over the last nine years, with GH₵264.8 million (GH₵264,843,380) disbursed in 2022 alone.
The subsidies, which are defined as the difference between the price per liter of fuel paid by artisanal fishers and the actual price they should have paid, have been identified as capacity-enhancing subsidies for Ghana’s marine artisanal fisheries.
Data from the National Petroleum Authority (NPA) shows that the price of premix fuel in 2023 is GH₵5.8554 per liter, which is 50% subsidized and capped at 50%.
Over the past eight years, the price of premix fuel has been kept at GH₵1.57 per liter, with subsidies ranging from 28% in 2015 to 69% in 2021.
The NPA, in collaboration with the Ghana Oil Company Limited (GOIL), has set up six prototypes of standard premix retail outlets at six landing beaches across the country to ensure the efficient and equitable distribution of premix fuel to fisherfolk, reversing the perennial challenge of shortages.
The government’s subsidies on premix fuel have had a significant impact on the marine artisanal fisheries in Ghana, and measures have been put in place to ensure their efficient and equitable distribution.
Source: norvanreports.com
