REVISED PREMIX FUEL GUIDELINES

GUIDELINES FOR THE RE-ORGANISATION OF PREMIX FUEL ALLOCATION, DISTRIBUTION AND SALE

INTRODUCTION

Since inception in 1990, the allocation, distribution and sale of premix fuel, a heavily subsidized product, has been challenged by numerous problems. The original idea was to ensure the timely availability of the product to the fishers at an affordable price. It was also to empower the fisher groups to run the premix fuel sale point at the landing beaches and the proceeds to be used in developing their communities and themselves.

By the end of year 2008, the original idea had been diluted to the extent that:

a)         There was a proliferation of premix fuel sale points owned by individuals rather than the fisher groups. Premix fuel sale points grew from 128 in 2001 to about 900 in 2008;

b)         There was uncontrollable corruption in the premix fuel administration;

c)         There was rampant diversion of the product from the intended destinations;

d)         There were shortages to the disadvantage of the fishers;

e)         Premix was used to adulterate regular petrol to the detriment of motorist;

f)          There was general dissatisfaction among fishers, particularly with the mode of sale of the product.

2. Review Process

On assumption of office, the Honourable Minister of Food and Agriculture at the request of His Excellency the President, and in recognition of the importance of the fishing industry to the economy of Ghana, constituted a team of expert with deep knowledge and understanding of the fishing industry and the premix fuel situation to form a sub-committee, which was tasked to among others;

a)         Take a hard look at the premix fuel allocation, distribution and sale situation;

b)         Identify problems bedeviling the premix fuel delivery system;

c)         Propose suggestions as to how these problems can be eradicated to ensure that the artisanal fishers are the core beneficiaries, i.e. receiving  the product on time, in sufficient quantities and at approved National Petroleum Authority (NPA) prices;

d)         Determine the relevance  and if appropriate, the reconstitution of the National Premix Committee (NPC).

The following constituted the membership of the sub-committee which met and deliberated from Tuesday, 18th May to Thursday, 21st May, 2009.

a)         Hon. Dr. J. S. Annan- Deputy Minister of Education (Co-Chairman)

b)         Hon. (Mr.) Nii Amasah Namoale – Deputy Minister of Food and Agriculture in charge of fisheries (Co-Chairman)

c)         Mr. Alfred Tetebo – Director of Fisheries/MoFA (Member)

d)         Flt Lt. M.G. Tackey -President -National Fishermen Association of Ghana (NAFAG) (Member)

e)         Mr. Kingsley O. Owusu – Bureau of National Investigation (B.N.I) (Member)

f)          Mr. J.K. Imbeah – Tema Oil Refinery (T.O.R)

g)         Papa Kodwo Mbir – Consultant (Member)

h)         Mr. Setor Avoke – Ministry of Food and Agriculture (MoFA) (Secretary)

It was agreed by the sub-committee that, given the conclusions drawn from the investigative

reports submitted by the Ministry of Energy (MoE), the old Premix Secretariat , TOR, NAFAG

BNI, MoFA, National Security, and discussions that followed, there was a need to:

  • restructure  the premix fuel administration;
  • streamline the monitoring system and;
  • examine the role of OMCs in the distribution of premix fuel.

3. SUB-COMMITTEE RECOMMENDATIONS

To this end, the sub-committee recommended the need and urgency to:

a)         reconstitute an NPC which shall be based in Accra;

b)         provide an operational Secretariat for the NPC which shall be based in Accra.

3.1 COMPOSITION OF THE NATIONAL PREMIX COMMITTEE

The NPC, whose Chairman will be appointed from among the members by the Hon. Minister of Food and Agriculture, will consist of representatives from:

a)         The sector Ministry (MoFA);

b)         Ministry of Energy; (MoE);

c)         Fisheries Commission;

d)         National inland Canoe Fishermen Council (NICFC);

e)         Ghana National Canoe Fishermen Council (GNCFC);

f)          National Fisheries Association of Ghana (NAFAG);

g)         Industry Coordinator of the Association of Oil Marketing Companies (AOMC)

h)         Two other nominees appointed by the Minister of Food and Agriculture.

3.1. 1 FUNCTIONS OF THE NATIONAL PREMIX COMMITTEE

The functions of the NPC shall be as follows:

a)         review all existing premix fuel sale points;

b)         set up procedures for receiving/approving applications and for the establishment of new premix fuel sale points;

c)         examine all licenses given for the purpose of selling premix fuel and determine their relevance;

d)         set out guidelines and modalities for the establishment of premix fuel sale points, purchasing procedures, transportation of premix fuel to sales points and sale to beneficiaries in consultation with stakeholders;

e)         determine the minimum and maximum quantities to be supplied depending on the need of fishers and the season.

f)          Determine the price build-up of the commodity in consultation with the NPA;

g)         discuss any other issue relevant to the administration of premix fuel;

h)         institute a technical auditing of all LBCs;

i)          present quarterly and annual reports of activities of the NPC to the Minister of Food and Agriculture.

3.2 COMPOSITION OF THE PREMIX SECRETARIAT

A Premix Secretariat shall be established to service the NPC. The composition of the Secretariat shall be as follows:

a)         Manager

b)         An Accounts Officer

c)         Three (3) Operational Officer

d)         Laision Officer at TOR

e)         Computer Literate Secretary

f)          Driver Mechanics

g)         Messenger/Cleaner

All Officers at the Premix Secretariat should not owe any allegiance to any fishing association or OMC.

3.2. 1. Functions of the premix secretariat

The Premix Secretariat shall:

a)         categorize the LBCs into groups and estimate what their lifting should be;

b)         monitor, evaluate and reconcile premix fuel requested by the NPC, supplied by TOR and lifted by OMCs, with fuel received by LBCs;

c)         perform all daily technical and administrative activities dealing with premix fuel;

d)        receive complaints and other reports from beneficiaries and forward them to the NPC for  redress;

e)         serve as a link among the NPC. OMCs and other stakeholders;

f)          undertake all financial transactions, report to and advise the NPC on all matters concerning premix fuel administration;

g)         arrange for an annual financial audit by an external auditor;

h)         arrange an annual technical audit.

4. FORMATION OF LANDING BEACH COMMITTEES

To ensure dedicated and committed sale of premix fuel to deserving fishers:

a)         LBCs should be set up at NPC approved landing beaches;

b)         the formation of LBC should be facilitated by the Metropolitan/Municipal District Chief Executives (MMDCEs) concerned in consultation with the NPC;

c)         all MMDCEs concerned should thereafter not interfere with the administration and sale of premix fuel at the landing beaches;

d)         LBCs shall be dissolved on account of any of the following:

i)          misappropriation of funds;

ii)         refusal to account to the fishing community and the MMDCEs for its stewardship;

iii)         any LBC that takes an action contrary to the functions of the LBC;

iv)        the dissolution of LBCs shall be done by the MMDCEs only with the approval of the NPC.

5.1       Composition Of Landing Beach Committees

Each LBC will be made up of the following members;

5.1.1    Marine Sector

a)         Chief Fisherman

b)         Rep. of canoe owners

c)         Rep. of fish mongers

d)         One fisher to be nominated by MoFA in consultation with the MMDCE

e)         One other person representing the MMDCE.

5.1.2    Inland Sector

a)         Chief Fisherman/Headman

b)         Rep. of transport boat owners

c)         One fisher to be nominated by MoFA in consultation with the MMDCE

d)         Rep. of fishers

e)         Rep. of fish mongers

f)          One other person representing the MMDCE.

5.2 Functions of the Landing Beach Committee

a)         Each LBC shall engage the service of a pump Attendant, whose duties will be to sell premix fuel, regularly gauge fuel stock, estimate demands and keep storage tanks clean. The pump Attendant shall be paid by the LBC.

b)         Each LBC shall engage a Secretary who will be responsible for initiating orders for supply of premix fuel to the NPC and keep accurate records on supply and sales of premix fuel. The Secretary shall be paid by the LBC.

c)         The Pump Attendant and Secretary are not members of the LBC and should therefore not have any voting rights.

d)         Only LBC will be allowed to sell premix fuel and to only fishers.

5.3 Distribution of Premix Fuel Margins

LBCs should pay the cost of premix fuel to the selected OMC within ten (10) days of receipt of the product.

Breakdown of Margin:

Chief Fisherman                        12%

Other members of the LBC       18%

Secretary                                   10%

Pump Attendant                         7%

Fishing Community                   53%

a)         Each LBC must have a bank account where the 53% for the fishing will be deposited.

b)         There shall be a minimum of two (2) signatories to the account and these should be members and or the Secretary of the LBC.

c)         No MMDCE should be a signatory to the account. However, MMDCEs should

institute an annual financial auditing into the accounts of LBCs under their jurisdiction.

5.4 DEVELOPMENTAL PROJECTS OF FISHING COMMUNITIES

a)         LBCs shall decide on developmental projects in consultation with the fishing community.

b)         All developmental projects should be done in consultation with the Metropolitan Municipal District Assemblies (MMDAs).

6. MODE OF PROCESSING OF ORDERS

To streamline the procurement of the product, the following shall be adhered to:

a)         each LBC will select an OMC of its choice to supply the premix fuel;

b)         the Premix Secretariat shall prepare an order for the LBCs with approval from NPC;

c)         the Secretariat shall place the approved order at TOR on behalf of the LBCs and inform the selected OMCs accordingly;

d)         TOR shall load the selected OMCs which shall deliver the premix fuel to the LBCs at the landing beaches;

e)        in all cases, the appropriate documentation shall be strictly administered and signed by the selected OMCs and the authorized representatives of the LBCs.

f)         there should be no involvement of the BNI whatsoever in the administration of premix fuel at the landing beaches;

g)         TOR shall give weekly returns on lifting’s to the Premix Secretariat;

h)         stakeholders may request for information on lifting’s from the Premix Secretariat and vice versa.

7. OPERATIONAL REQUIREMENTS OF OMCS AND LBCS

To qualify for supply and receipt of premix fuel:

a)         OMCS selected by the LBCS must supply storage tanks in good condition at the landing beaches approved by the Environmental Protection Agency (EPA) and NPA;

b)         every LBC shall deal with only one OMC;

c)         no fuel station dealing in regular petroleum products shall engage in the sale of premix fuel;

d)         no private individual shall be allowed to deal in the sale of premix fuel.

7.1 DEALING WITH DISCREPANCIES

Discrepancies noticed shall immediately be investigated by a select team constituted by the NPC and include a Chief Fisherman.