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)