Friday, September 26, 2025
NewsCenta
  • Home
  • News
    • Politics
    • Local
    • Education
    • Agriculture
    • World
  • Entertainment
    • Celebrities
    • Music
  • Lifestyle
  • Business
  • Sports
  • Tech
  • Opinion
No Result
View All Result
NewsCenta
  • Home
  • News
    • Politics
    • Local
    • Education
    • Agriculture
    • World
  • Entertainment
    • Celebrities
    • Music
  • Lifestyle
  • Business
  • Sports
  • Tech
  • Opinion
No Result
View All Result
NewsCenta
No Result
View All Result

Premix fuel subsidies cost govt GH₵1.2bn in 8 years

admin by admin
August 27, 2022
in Business
0
Share on FacebookShare on Twitter

Government has spent a whopping GH₵1.2 billion (GH₵1,204,511,952) as subsidy on premix fuel to cushion fishermen across the country.

2014-2021

You might also like

Ghana GIPC

Ghana attracts $862.9m in FDI for first half of 2025 – GIPC

September 25, 2025
Access Bank Nkrumah

Access Bank Ghana appoints Pearl Nkrumah as new MD

September 25, 2025

The amount was spent between 2014 and 2021, a period of eight years.

Of most importance is the premix fuel subsidy, which is defined as the difference between the price per litre of fuel paid by the artisanal fishers and the national price applied to fuel purchases for other uses.

Capacity-enhancing subsidies

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

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 the eight years and the subsidies ranged from the lowest of 28% in 2015 to the highest of 69% in 2021.

Data from the National Petroleum Authority (NPA) shows that in 2014, the full pass through price of premix fuel 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.

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₵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).

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).

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).

Similarly, in the year 2019, the actual price of a litre of premix fuel again 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 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).

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).

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.

The National Premix Committee (NPC) was established by the government in July 2009 to oversee the administration and distribution of premix fuel, a heavily subsidised petroleum product.

Landing Beach Committees

Landing Beach Committees (LBCs) were formed at the various landing beaches to empower the fishermen to run premix fuel stations at the landing beaches.

Each LBC was required to select an oil marketing company to supply them with premix fuel.

Proceeds from the sale of premix fuel at the landing beaches are to be used in developing the fishing communities.

National Premix Secretariat

A National Premix Secretariat (NPS) was established to service the NPC.

The allocation and distribution of premix fuel is done by the NPS. Weekly requests for the distribution of premix fuel are sent to the Tema Oil Refinery (TOR).

TOR blends and loads the product into tankers of the assigned oil marketing companies (OMCs) for distribution to the various Landing Beach Committees.

The NPC’s mandate is to oversee the efficient and effective administration and distribution of premix fuel.

Since premix fuel is highly subsidised by the government, the NPC ensures that monitoring is enforced to avoid diversion.

The NPC also ensures that the proceeds from the sale of premix fuel are being used to develop the fishing communities.

Diverse developmental projects were undertaken by majority of the LBCs.

 

 

 

 

 

 

 

 

 

Post Views: 828
Tags: GhanaNational Petroleum AuthorityNewscentaPremix fuelsubsidy on premix fuel
admin

admin

Related Stories

Ghana GIPC

Ghana attracts $862.9m in FDI for first half of 2025 – GIPC

by NewsCenta
September 25, 2025
0

Ghana has recorded a sharp rebound in foreign direct investment (FDI) in the first half of 2025, raising hopes that...

Access Bank Nkrumah

Access Bank Ghana appoints Pearl Nkrumah as new MD

by NewsCenta
September 25, 2025
0

Access Bank (Ghana) Plc has announced the appointment of Madam Pearl Nkrumah as Managing Director, effective October 1, 2025. Her...

Ghana UK

Ghana and UK agree $256m debt deal

by Kojo Emmanuel
September 25, 2025
0

Ghana has signed a bilateral debt restructuring agreement worth about US$256 million with the United Kingdom (UK) as part of...

Serene Insurance

Serene Insurance, Otoo grab 2 CIIG Excellence Awards

by NewsCenta
September 20, 2025
0

The Head of Claims at Serene Insurance Company Limited, a member of the First Sky Group, Mr. Daniel Nunoo Otoo,...

Recommended

FDA lead

Lead, mercury found in turmeric, cereal mixes and others — FDA

September 26, 2025
MTN Foundation work Prof Manu youth chair

Impact, sustainability key to project selection — MTN Foundation Chair

September 26, 2025
Ghana 5G digital Africa Mupita

Africa risks irrelevance without swift AI adoption — Mupita

September 26, 2025

Popular Story

  • Songs Daddy Lumba

    See the list of over 200 songs Daddy Lumba released

    742 shares
    Share 297 Tweet 186
  • Gold-backed policies since 2021 driving economic gains — BoG

    714 shares
    Share 286 Tweet 179
  • 10 of top 11 causes of death killing more men in Ghana

    698 shares
    Share 279 Tweet 175
  • Bissue floors High Court and OSP at Supreme Court

    690 shares
    Share 276 Tweet 173
  • Monday, May 26, 2025 Newspaper Headlines

    683 shares
    Share 273 Tweet 171
NewsCenta

Newscenta is a Ghana-based news organisation publishing in print (The Newscenta Newspaper) and on a digital media platform (newscenta.com) dedicated to delivering timely and impactful news across various sectors, including politics, business, economy, technology, and culture.

  • About Us
  • Contact Us
  • Health
  • Education
  • Mining
  • Energy
  • Telecoms
  • Agriculture
  • Opinion
  • Trade
  • Newspaper Headlines

© 2025 All Rights Reserved NewsCenta.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

No Result
View All Result
  • Home
  • News
    • Politics
    • Local
    • World
  • Entertainment
    • Celebrities
    • Music
  • Lifestyle
  • Newspaper Headlines
  • Business
  • Agriculture
  • Education
  • Sports
  • Tech
  • Opinion

© 2025 All Rights Reserved NewsCenta.

Connect with us