The Africa Centre for Energy Policy (ACEP) is urging the government to halt subsidies on premix fuel due to widespread abuse and diversion of the subsidy.
According to ACEP’s Policy Lead, Mr. Kodzo Yaotse, the subsidy intended for artisanal fishermen is instead enriching a select few.
Premix fuel, a blend of marine mix lubricants and gasoline, is highly subsidized for use by artisanal fishermen in Ghana.
However, ACEP’s investigations reveal that the subsidy is being diverted, forcing intended beneficiaries to purchase fuel at higher rates.
Data shows a 300% increase in premix fuel consumption in northern Ghana, despite the absence of landing beaches in the area. This suggests that the fuel is being diverted for use in motorbikes and other vehicles, rather than its intended purpose.
ACEP advocates for ending the premix fuel subsidy, prioritizing transparency and accountability in the energy sector. The organization argues that the subsidy is perpetuating abuse and inefficiency, rather than serving its intended purpose.
This call to action echoes concerns raised by the United Nations Development Programme (UNDP) about the detrimental effects of fossil fuel subsidies on people and the planet.
The UNDP notes that the world spends an astounding $423 billion annually on fossil fuel subsidies, which could instead be used to address pressing global issues like poverty and climate change.
Source: Oyerepafmonline.com/Bernard K Dadzi
