The Centre for Environmental Management and Sustainable Energy has disclosed that premix fuel sold in fishing communities is overpriced.
The Centre says that although premix fuel ought to be sold at a at a subsidised rate, evidence available shows that it has been overpriced.
A statement issued by the Centre raised concerns over how hoarders sold the commodity at exorbitant prices to fishermen.
It revealed that the issue of artificial shortages was still rampant, creating an opportunity for hoarders to sell premix files above the recommended price.
“Historical evidence shows that premix fuel has not always been sold at subsidized prices due to artificial shortages created by hoarders. Joynews reported in 2019 that hoarders were selling the product at Ghc15 per litre, 100% more than the subsidy price of Ghc7.30 per litre. The practice of artificial shortage has not changed, as field research indicated a shortage of premix fuel in fishing communities, leading hoarders to sell the product above the maximum price of Ghc5.93 as of the 1st Window of August 2024.”
According to the Centre, a market survey conducted disclosed how the prices of premix had increased between 15% to 68% across the various fishing communities in the country.
“A market survey revealed that in Buipe in the Savannah region, a litre of premix is Ghc6.8 per litre (15% higher than the subsidized price), and in the Central region, Salt Pond is Ghc7.8 per litre (32% higher than the subsidy price), Biriwa is Ghc10 per litre (67% higher than the subsidy), Apam was Ghc8.80 per litre, and Kormantse is Ghc7.6 per litre (28% higher than the subsidy price). The research further reveals that some cartels sell a barrel (drum) of premix at Ghc3500 and a litre at Ghc14, deviating from the subsidy’s purpose. This implies that the fuel subsidy is enriching some recalcitrants at the expense of the country.”
It further lamented that the premix subsidy regime has not significantly improved the welfare of fishing communities.
The statement said “The Trade Union Policy for Decent Work in the Fishing Sector of Ghana, published in 2024, reports incidences of dwindling catch, dwindling income, health and safety problems, hazardous working conditions, and accidents. The report further states that there has been a 40% decline in artisanal fishermen in the last decade. This implies that after pumping over Ghc1.4 billion into subsidizing premix fuel to improve welfare, the outcome has been a deterioration of fishermen and fishing communities. Fishing communities have not benefited much from the subsidy because cartels and political cronies have mostly hoarded the product, sold it above minimum prices (subsidy prices), or diverted the products to other markets”.
As part of its recommendations, the Centre has asked National Security to investigate and deal with those involved in the hording of the premix.
“The National Security must investigate and apprehend recalcitrants who sell premix fuel above the subsidy price across landing beaches. Such action will deter people from taking advantage of poor fishermen.”
By: Rainbowradioonline.com/Ghana
