The Centre for Environmental Management and Sustainable Energy has raised an alarm over the ongoing practice of the diversion of premix fuel.
According to the Policy Research and Advocacy Centre, the diversion of premix fuel is a threat to the safety of motorists since the fuel ends up being dubiously sold as premium fuel to motorists.
The Cente says their checks revealed that some fuel operators are fuelling cars of unsuspecting motorists with suspected premix fuel instead of the premium product.
CEMSE in a statement indicated that the situation is causing damage to vehicles.
It warned that premix products sold in the market affect the quality of the products sold and damage vehicles, motors and other machinery.
It referenced the drop in volumes of premix fuel, which were suspected to have been diverted and being sold as premium fuel.
Premix fuel is the only subsidised fuel product by the government of Ghana since the collapse of the government subsidy program in 2015.
The government’s intention in keeping the premix subsidy is to support the fisheries sector’s growth and improve the welfare of workers in the fisheries value chain by reducing the production cost of fishing.
However, the sector has been characterised by hoarding, diversion, and overpricing, a situation the Centre lamented was making the initiative ineffective.
The Ministry of Fisheries and Aquaculture Development (MFAD) had projected a supply of 78 million litres of premix fuel, but the outturn was 21 million litres in 2023.
The remaining litres, which are suspected to have been diverted to the centre, may have ended up on the market and sold as premium fuel.
“Although the government subsidizes premix fuel in Ghana, costing other petroleum product users, evidence from public documents shows that significant volumes of premix fuel are diverted into other markets, with a high probability of ending up in vehicles such as gasoline (petrol).
“The Ministry of Fisheries and Aquaculture Development (MFAD) projected to supply 78 million litres of premix fuel, but the outturn was 21 million litres,” excerpts of the statement noted.
“Contrary to this, the National Petroleum Authority(NPA) indicated that premix consumption in 2023 was 34 million litres, indicating a shortfall of about 13 million litres compared to the data from MFAD.
This implies that 13 million litres of premix fuel were diverted into the market as other petroleum products by blending with other petroleum products. Premix-blended products sold in the market affect the quality of the product sold and damage machinery,” the statement added.
