Home Business Gov’t pegs premix fuel subsidy for 2019 at Ghc206m despite reports of...

Gov’t pegs premix fuel subsidy for 2019 at Ghc206m despite reports of shortages

The Minister for Energy, John Peter Amewu, says government will continue to subsidize premix fuel to make the product available to fisher folk across the country.

In recent times, the usual reports about the shortage of the product have resurfaced in some coastal communities.

The Minister blames the shortage on persons he calls crooks who hoard the product only to sell later at exorbitant prices.

Speaking at a handing over ceremony of a prototype premix retail outlet across various landing beaches, Mr. Amewu said subsidy for premix fuel for 2019 alone is estimated at 206 million cedis.

“The current subsidy on premix fuel is 63% of the full price, and this has risen from about 43% in January 2017,” he said, adding that government has since 2017 to May 2019 spent GHS373.9 million to cushion fishermen.

Mr. Amewu cited for example that a total of GHS137.5 million was spent in 2017 and GHS160.8 million in 2018 on the product.

He stated that this amount is projected to rise to about GHS 206 million in 2019.

According to him, a total of GHS134,604,110 million has been accumulated from January to September 2019.

“We are happy to learn that stringent measures instituted by the New Patriotic Party government led by President Nana Akufo-Addo has discouraged the practice of diversion which is detrimental to our effort at building a just and fair society,” he said.

He stated that the move has consequently impacted on the efficient and equitable distribution of premix fuel to fisher folks, reversing the perennial challenge of shortages.

He stressed that the Ministry of Energy will continue to give policy directions to the National Petroleum Authority, NPA, to ensure protection is given to the business of genuine players in the industry.

“We shall work closely with the Ministry of Fisheries and Aquaculture and the National Premix Secretariat to expose the fraudulent ones desperately trying to undermine the decency of premix fuel distribution and consumption,” he assured.