Ghana: Distribution Of Premix Fuel Will Soon Be Digitized- Bawumia

Vice President of the Republic of Ghana, His Excellency Dr Mahamudu Bawumia, has served notice that the digitization agenda of the government will soon be extended to the distribution of premix fuel in order to increase efficiency of its delivery to fishermen.

According to Vice President of the West African country, introducing digital technologies in premix distribution will ensure that fisherfolk, for whom the product is subsidized and provided for, actually get it.

Vice President Bawumia stated this when he delivered a Keynote Address at the 3rd Ghana International Petroleum Conference (GhipCon) in Accra, capital of Ghana, on Wednesday 10th July, 2019.

“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,” Vice President Bawumia said.

“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.

“So we’ve been looking at this issue and we’ve decided that the best way to deal with this is to digitise the process so that we can be able to direct the subsidy to each boat that is registered. We’ve registered all the boats and we will implement a digitization process in the distribution of premix in Ghana soon, and we hope to extend it also to fertilizer in the next year as well. Digitization will also end the politicization of premix distribution,” he added.

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.

“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. 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 will provide an enabling environment and appropriate incentives for investors.”

This year’s conference, organized by the National Petroleum Authority in partnership with Association of Oil Marketing Companies and Chamber of Bulk Oil Distributors(CBOD), 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.