AGRICULTURE

Two years of significant gains in premix management
The premix fuel sector has seen some significant sanity been restored in its supply and distribution in the past two years.

Date Created : 3/15/2019 4:03:23 AM : Story Author : Shirimori Dominic/Ghanadistricts.com

Premix Fuel is a special fuel that drives the fishing industry in Ghana. The purpose-made fuel which is a blend of Marine Mix lubricants and gasoline is produced for fisher folks who use outboard motors for their fishing activities. And it is highly subsidized.

Government also realizing how important the fishing sector is to the economy went a step further to establish the National Premix Fuel Committee (NPFC) in 2009 to oversee the efficient distribution and monitoring of Premix fuel to the fishing communities.

Unfortunately, the supply and distribution of premix fuel had been a major setback in the fishing industry, an area which always put the fishing sector in the spotlight for all the wrong reasons.

The highly subsidized fuel intended to help the industry progress and be efficient in meeting the protein needs of the country while ensuring people’s (fishers) livelihoods are sustained was rather a heaven for quick wealth for some unscrupulous people who engaged in various forms of illegal transactions with the fuel – the hording, diversion and sale to people other than the fishers was rampant, thus draining and eroding the very positives the intervention is intended for.

Though previous managers tried to resolve challenges associated with the sector over the years, their efforts failed to yield significant results.



Restructuring and Gains

It is refreshing however to observe that the current management of the National Premix Fuel Committee (NPFC) and the National Premix Fuel Secretariat (NPFS) seems to have gotten hold of the issues and instituted pragmatic measures towards resolving them; and the benefits are outstanding.

A major restructuring exercise undertaken by the current management over the past two years brought some light and hope to the sector, and relieved the fisher folks of excessive worries about premix fuel and related issues.

A report on the National Premix Fuel by the National Premix Fuel Committee (NPFC) in collaboration with the National Premix Fuel Secretariat (NPFS) in December 2018 and sighted by Ghanadistricts.com indicates that the last two years of reforms brought about;
i. Zero incidence of proven Premix Fuel diversion since November 2017
ii. Newly installed tracking software at the NPFS to monitor trucks (BRVs) to avert diversions
iii. Improved collaboration with NPA for efficient distribution of Premix Fuel
iv. Restructured LBCs in all inland regions. (Quantitative Analysis can be found in the document). This is based on the number of trucks of Premix Fuel needed per week and the corresponding level of fishing and transportation activities in a particular District or Municipality
v. In adherence to a directive from the Economic Management Team (EMT), new Regional Coordinating Bodies Chaired by the Regional Ministers have been instituted to ensure proper accountability in collaboration with the NPFS.
vi. The integration of Metropolitan, Municipal and District Chief Executives (MMDCEs) in the management and distribution chain has also accounted for the efficient management of the Premix Fuel.

The years in review also witnessed steady decline in total lifting comparing 2017 and 2018 total liftings. “As at November 2018, a total of Sixty-Nine Million, Four Hundred and Thirty Thousand, Five Hundred (69,430,500) litres of Premix Fuel was lifted from Tema Oil Refinery”, representing about 76% of total lifting for 2017.

On face value, this would be termed as negative. However, it was noted and attributable to the restructuring exercise that was conducted as well as efforts at suppressing diversion of the Premix Fuel. That is to say the effective management practices were yielding positive results.

The decline, however, is not without operational challenges since a lot is still being done to make the system more transparent and effective.



Landing Beach Committees (LBC) and Accountability

A critical element in the supply and distribution of premix fuel to landing beaches was to ensure landing beaches committees (LBC) accumulate some funds from the subsidies for development of their communities. This, the National Premix Fuel Secretariat enjoins landing beaches under its LI 2233 Clause 27 (2) to open a bank account for the fishing community into which 53% of the proceeds of margins from the sale of Premix fuel shall be paid.” This laudable idea was also exploited in the past with a number of landing beaches failing to account for the fund.

However, under this current administration, the report noted that a lot has changed in this regard as all landing beaches rendered account of some significant amount in their account for community development. "The NPFS can proudly confirm that nationwide, there is over Seven Million Ghana Cedis (7,000,000.00) accumulated across various LBC accounts in a little over a year nationwide”, the report noted.

To this end, some LBCs have already submitted for proposals for the construction of various projects in their communities including ICT centres, libraries, fish markets, modern public toilets, hostel Facilities among others.

It is also worth disclosing that the restructuring of the premix sector also greatly affected the number of Landing beaches to ensure efficiency. From an initial figure of about 475, the number was reduced to 286 Landing Beaches Nationwide that receive and distribute Premix fuel to the fisher folks at the various Landing Beaches.

The inland fishing sector was not spared in the wave that is causing a lot of efficiency in the sector having seen 64% reduction in LBC from 293 to 106.

The introduction of daily and monthly returns books for proper record keeping and accountability of Premix Fuel Sales, has also largely curtailed the canker of hoarding and re-sale of Premix Fuel at exorbitant prices to fisher folks and other non-fishers.

Consolidation of Gains

A thorny question that begs for answers anytime progress is made in any sector is - “How sustainable is it?” the good news in this case however is that the future even looks brighter with a number of measures being lined up for execution to further consolidate the gains made so far.

The NPFS looks forward to among other things;
• Expand nationwide canoe registration and card issuance exercise designed to end impersonation by non-fishers who take advantage of the lapses in the current system to fraudulently benefit from the Premix Fuel distribution.
• Acquire Modern Premix Fuel dispensers and Premix tanks;
• Continue the implementation of mechanisms to ensure judicious utilization of the 53% community development funds for specific community projects;
• Massive safety sensitization outreach which will be backed by the distribution of safety and standardization gadgets to all LBCs across the country;
• Acquisition of a fully automated software that will guarantee fast, efficient and transparent Premix Fuel administration and distribution.

With these in mind, sector players would have to remain focused to put the National Premix Fuel Secretariat on it toes for full and timely implantation of these plans to the fishing sector stand stronger.