Business News of Sunday, 31 May 2026

Source: thebftonline.com

MoFAD bares teeth at illegalities in the premix fuel sector

The downstream premix distribution chain has for decades been plagued by hoarding, illegal siphoning The downstream premix distribution chain has for decades been plagued by hoarding, illegal siphoning

The Ministry of Fisheries and Aquaculture Development (MoFAD) is cautioning premix managers and oil marketing companies against price manipulation, under-delivery and diversion of the product – phenomena which have characterised its distribution over the years.

Sector minister Emelia Arthur extended the caution last week during an official announcement of revised ex-pump prices for premix fuel nationwide.

Speaking to Landing Beach Committees (LBCs) at Shama in Western Region, Ms. Arthur said premix fuel remains the operational backbone of the country’s marine fishing sector, powering thousands of fishers’ canoes along the coastline.

The downstream premix distribution chain has for decades been plagued by allegations of political interference, hoarding & illegal siphoning and black-market sales to commercial buyers outside the fisheries value chain.

Stakeholders have been raising concerns about illegalities in the premix fuel sector, particularly opaque distribution practices and revenue leakages at several landing beaches.

According to the Fisheries minister, each tanker delivering premix fuel is expected to discharge 13,500 litres. Committees have been directed not to endorse delivery waybills if the quantity supplied falls short of the approved volume.

“If less than 13,500 litres are discharged, the committee must immediately report the matter to the ministry so sanctions can be applied against the responsible oil marketing company,” she added.

Under the approved sharing arrangement, 47 percent of the surplus is allocated to Landing Beach Committees for operational activities while 53 percent is reserved for community development projects within fishing communities.

Ongoing reforms in the premix fuel subsector are aimed at improving transparency, restoring confidence in the management system and ensuring fair access to fuel supplies for genuine fishers while strengthening economic activity in coastal communities.

Since March this year, the National Premix Fuel Secretariat (NPFS) has been embarking on a nationwide accountability drive in collaboration with Metropolitan, Municipal and District Chief Executives (MMDCEs) to strengthen transparency and financial oversight in the management of premix fuel revenues and the Community Development Fund across Ghana’s fishing communities.

The yellow ‘Kufuor gallon’ is a commonly used calibrated container within fishing communities and serves as the benchmark measurement for premix fuel distribution among artisanal fishers.

Announcing the new pricing guidelines, the minister said standard ‘yellow Kufuor gallons’ used in premix fuel sales must retail at GH¢176.40. However, Landing Beach Committees may charge up to GH¢180 only in situations where there are difficulties providing change.