Premix fuel subsidies hit  GH₵264.8m  in 2022

Government has spent GH₵264.8 million (GH₵264,843,380) as subsidies on premix fuel to cushion fishermen across the country in 2022.

GH₵1.4bn subsidies in 9 years

This brings the total subsidies on premix fuel since 2014 to GH₵1.4 billion (GH₵1,469,355,332), a period of nine years.

The premix fuel subsidy is defined as the difference between the price per litre of fuel paid by the artisanal fishers and the actual price they should have paid for the fuel.

Capacity-enhancing subsidies

Subsidies given directly to Ghana’s marine artisanal fisheries have been identified as capacity-enhancing subsidies.

Full pass through price

Data from the National Petroleum Authority (NPA) shows that the full pass through price for 2022 varied for various price windows throughout the year.

In the same vein, the per centage of subsidies also varied for each pricing window rising as high as over 80% within some windows.

The total subsidies for year 2022 therefore amounted to GH₵264.8 million (GH₵264,843,380)

GH₵5.8554 per litre in 2023

The price of premix fuel in 2023 is GH₵5.8554 per litre.

Subsidies now capped at 50%

This price is 50% subsidized and capped at 50%.

Price kept at GH₵1.57 per litres for 8 years

The price of premix fuel was kept at GH₵1.57 per litres throughout eight years and the subsidies ranged from the lowest of 28% in 2015 to the highest of 69% in 2021.

GH₵330.8m subsidies in 2021

For 2021, the actual price of a litre of premix fuel rose to GH₵5.07, resulting in 69% subsidy amounting to GH₵330.8 million (GH₵330,864,891).

In respect of 2020, the actual price of a litre of premix fuel dropped to GH₵3.46.

GH₵172.8m subsidies in 2020

The drop in the actual price led to a corresponding decrease in the subsidies to 55% which amounted to GH₵172.8 million (GH₵172,868,861).

Similarly, in the year 2019, the actual price of a litre of premix fuel rose to GH₵4.10 per litre even though the government maintained the selling price at GH₵1.57 per litre.

GH₵172.5m subsidies in 2019

Government therefore has to cough out GH₵172.5 million (GH₵172, 596,350) to cover the 62% subsidy per litre of premix fuel.

In 2018, the price of a litre premix fuel was still kept at GH₵1.57 though the actual price was GH₵3.39.

GH₵160.8m subsidies in 2018

This translated into 54% subsidy and this cost the government GH₵160.8 million (GH₵160,802,645).

The NPA data shows that the actual price of premix fuel per litre in 2017 was GH₵3.32.

GH₵137.4m subsidies in 2017

But, government still kept the selling price at GH₵1.57, leading to an increase in the subsidy to 53% for the state to pay the difference of GH₵137.4 million (GH₵137,492,789).

GH₵64.1m subsidies in 2016

For 2016, the actual price rose to GH₵2.61 per litre of premix fuel, increasing the subsidies to 40% costing the nation GH₵64.1 million (GH₵64,187,306).

GH₵70.2m subsidies in 2015

In 2015, the price of a litre of premix was GH₵2.17 and since it was sold at GH₵1.57, the 28% subsidies amounted to GH₵70.2 million (GH₵70,267,173).

GH₵2.30 per litre in 2014

The full pass through price of premix fuel in 2014 was GH₵2.30 per litre.

GH₵95.3m subsidies in 2014

However, the subsidised price of the commodity was GH₵1.57, representing 32% which cost the nation GH₵95.3 million (GH₵95,351,937) in subsidies.

Efficient and equitable distribution

Measures put in place have impacted the efficient and equitable distribution of premix fuel to fisherfolk and managed to reverse the perennial challenge of shortages.

Standard premix retail outlets

The NPA, in collaboration with the Ghana Oil Company Limited (GOIL), has constructed six prototypes of standard premix retail outlets at six landing beaches across the country.

The outlets, being operated by GOIL, are located at Shama Adjoa in the Western Region, Ga Mashie in the Greater Accra Region, Komenda, Apam-Munford and Winneba, all in the Central Region, and Dzemeni in the Volta Region.