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Distribution of Premix Fuel to be digitised – VP Bawumia

botchway July 12, 2019



By Maxwell Ofori


The regular complaints of premix fuels been diverted by some industry players may be a thing of the past following a decision by government to digitize its distribution.


Announcing the move, the Vice President, Dr Mahamudu Bawumia, the move to digitize the distribution was to increase efficiency of its delivery to fishermen.


He also believed that introducing digital technologies in premix distribution will ensure that fisherfolk, who are the sole beneficiaries got it, instead of it been diverted.


Vice President Bawumia made the announcement on Wednesday in Accra when he gave the Opening Address at the 3rd Ghana International Petroleum Conference (GhipCon).


“We have to increasingly leverage on the digital technologies that are available to increase efficiency in the downstream petroleum sector. One of the areas that we have been discussing and have taken a decision on is for example the distribution of premix fuel in Ghana amongst the fishermen.


“This is an area that has really been a challenging one because there are subsidies to premix fuel, and whenever there are subsidies, the distribution of the product tends to create economic rents, and when it creates these rents all sorts of people come in the middle and the fishermen, for whom this is designed, ultimately don’t even get the product because the products are smuggled and sold to other people who may not even be fishermen at higher prices,” he asserted.


Vice President Bawumia assured stakeholders in the petroleum downstream industry that government will create an enabling environment for downstream business to thrive competitively, efficiently and with the highest of safety standards.


He added that government, through the Ministry of Energy is in the process of ensuring institutional and regulatory re-alignment of the midstream gas subsector to bring clarity and a degree of certainty to players within that subsector.

He noted that the Minister for Energy would soon conclude the process of realignment and commence the process of legislative consolidation of the Gas Master Plan into a Gas Act.


The proposed Gas Act, Dr Bawumia said will provide an enabling environment and appropriate incentives for investors.


On his part, Deputy Energy Minister, Dr Mohammed Amin Adam, said the relevance of the petroleum downstream sector in the economic development of the country cannot be overemphasized.


He stressed that the sector contributes so much to “our economic efforts, including providing jobs, income for people and taxes to the government.


“The price consumers pay for these petroleum products has macroeconomic and microeconomic consequences, and therefore as a government, our vision for the sector is to ensure competitive pricing of quality refined petroleum products in the sub-region through the expansion and improvement of existing infrastructure…” he observed.


The Chief Executive Officer of the National Petroleum Authority, Hassan Tampuli also said in his remarks that the deregulation of the downstream industry, coupled with advantages such as “Ghana’s political stability, stable macroeconomic environment and closeness to major international shipping would contribute to the creation of the enabling business environment that will attract products sitting offshore Lome, into storage in Ghana, as well as easy shipping to other parts of Africa.


He said that was one of the main motivation factors Ghana intends to create a petroleum hub for Africa and beyond, not forgetting ongoing developments in other countries in the sub-region like Dangote refineries in Nigeria and others.


This year’s conference, organised under the auspices of Ministry of Energy and the National Petroleum Authority, is under the theme “Regional Collaboration; A Catalyst for Transformation”, and being attended by stakeholders in the petroleum sector in the West Africa sub-region.



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