The Ministry of Fisheries and Aquaculture Development (MOFAD), in partnership with Fuel Automation Ghana Limited, Universal Engineering & Consultancy Services Limited, and other collaborators, will officially inaugurate a digital distribution system for premix fuel on Tuesday, August 29.
The ceremony will take place in Elmina, the Central Region, and will be presided over by Vice President Mahamudu Bawumia.
The supply and distribution of Premix Fuel in the fishing industry began in 1994 with the primary goal of powering outboard engines and supporting artisanal fishermen to enhance their catch. This initiative led to an improvement in the living standards of fishing communities and increased the supply and demand for fish in Ghana.
The decision to subsidize premix fuel made it more accessible and affordable to fishing communities. Under the current government, the full digitalization of the supply and distribution of Premix Fuel was initiated through a Public-Private Partnership with Fuel Automation Ghana Limited.
Over the years, smuggling, diversion, hoarding, shortages, and politicization have been major challenges in the supply and distribution of Premix Fuel in Ghana since 1994. Statistics from the National Petroleum Authority (NPA) show that Premix Consumption between 2018 and 2022 (consumption in millions) was as follows: 2018 – 73, 2019 – 72, 2020 – 101, 2021 – 104, and 2022 – 39.
During this period, a total of 392 million liters of Premix Fuel were supplied to 300 landing beaches across the country. However, despite efforts to supply Premix Fuel to fishing communities, available data indicates significant quantities of diversion in 2017 alone, including 148,000 liters in January, 54,000 liters in February, 297,000 liters in April, 364,000 liters in May, 270,000 liters in June, 459,000 liters in July, 648,000 liters in August, and 1,107,000 liters in October.
The statement emphasized that full automation of the supply and distribution of Premix Fuel is the most effective solution to address these challenges.
“Financing was the major setback for previous Governments to undertake the full automation of the Premix Fuel Distribution System in Ghana.
“Fuel Automation Ghana Limited together with their technical partners identified the bottlenecks in the value chain of premix fuel supply and distribution and proposed technological solutions to the problems associated with the Premix Fuel ecosystem and a proposal was submitted to the Ministry of Fisheries and Aquaculture Development”.
Following a rigorous process under the Procurement Act, the Ministry of Fisheries and Aquaculture Development, in partnership with Fuel Automation Ghana Limited and its technical partner, initiated a project to establish Landing Beach Fuel Outlets and Automation Solutions for 300 Landing Beaches nationwide.
This endeavor operates under a Public-Private Partnership framework, specifically Design, Build, Operate, and Transfer (DBOT).
“The financing of the Project is exclusively done by Fuel Automation Ghana Limited and its local and foreign funding partners.
“The financing of national projects could be successfully done by the Private sector as Fuel Automation Ghana Limited has shown the way. This approach of Private Financing reduces the unnecessary financial burdens on the Government of Ghana and it is something that future Governments should emulate for national development”.
The statement said ‘Fuel Automation Ghana Limited’ is a 360-technology award winning company with 27001 ISO Certification and a member of the KGL Group”.