President John Dramani Mahama
President John Dramani Mahama has fulfilled a major commitment to Ghana’s fishing communities by settling outstanding premix fuel under-recoveries owed to Bulk Distribution Companies (BDCs), a move government officials and industry players say will stabilise supply, improve affordability, and protect livelihoods.
An amount of GH¢115,957,330, covering under-recoveries accumulated between March and September 2025, was fully paid on 16 January 2026. The settlement removes what industry players describe as a critical liquidity constraint within the downstream petroleum sector, particularly for BDCs supplying subsidised premix fuel to artisanal fishing communities.
The payment forms part of government policy to reimburse BDCs for losses incurred from selling premix fuel below market prices — a mechanism designed to cushion fisherfolk against rising operational costs.
The Minister for Fisheries and Aquaculture, Emelia Arthur, played a coordinating role in ensuring the financial intervention translates into tangible benefits at the landing-beach level.
The ministry has also worked closely with energy-sector agencies, BDCs, and fisheries groups to align petroleum supply decisions with fisheries policy priorities.
Beyond clearing arrears, the government has rolled out reforms aimed at improving efficiency, transparency, and accountability in the premix system. These include moves towards automating premix fuel distribution, strengthening record-keeping, and tightening oversight of the Community Development Fund (CDF) to ensure proceeds from premix sales are properly accounted for and reinvested in fishing communities.
“This payment is about keeping faith with our fisherfolk,” said Ebow Mensah, Administrator of the National Premix Fuel Secretariat. “When government commits to supporting the premix subsidy programme, that commitment must be backed by timely payments, so fuel flows without disruption.”
The impact of the intervention is already being felt. Premix fuel prices were reduced by 16 percent effective January 1, 2026, following a previous review in October 2025. The adjustment represents an estimated 18 percent year-on-year reduction, offering immediate relief to fishing communities that rely on premix fuel to power outboard motors.
Government continues to subsidise premix fuel by 50 percent, with prices reviewed quarterly by the National Petroleum Authority. Officials say clearing the arrears will help guarantee a more consistent supply to coastal and inland fishing communities, where shortages often lead to reduced fishing activity and higher operating costs.
Reacting to the settlement, Nana Kweigya, President of the Canoe and Gear Owners Association of Ghana, said fisherfolk are already noticing improvements.
“Our priority is availability and affordability,” he said. “When supply went down, the Administrator explained it was due to accumulated under-recoveries with the BDCs. Now that the government has worked on it, we are seeing some increase in supply, and the price per gallon has come down.”
He added that enforcement of the subsidised price appears to be improving.
“Over the years, there were disparities between what the government announced and what was sold at the pumps. We have observed that the Secretariat has made significant changes. If the government has paid to ensure increased access to premix fuel, that is good news for us.”
Similarly, Nana Joojo, President of the Canoe and Fishermen Council, said the settlement would strengthen BDCs’ capacity to supply premix fuel, though access challenges remain.
“It means the BDCs now have the capacity to produce the full haul,” he noted. “The oil industry is capital-intensive, and fishermen need access to premix every day. This is a good step because the shortages were linked to these debts, but for now, accessibility is still a problem in some areas.”
From inland fishing communities, Jacob Kabore Tetteh Ageke, President of the National Inland Canoe Fishermen Council and its women’s wing, described the payment as “very positive,” while calling for sustained improvements.
“Those of us on inland waters have our lives woven around premix,” he said. “Healthcare, funerals, emergencies, all depend on outboard motors. We thank the President and pray distribution returns to normal. We also plead with tanker drivers to reduce siphoning.”
He stressed that leakages undermine the benefits of government intervention.
“Premix fuel is not just a subsidy; it is a livelihood lifeline,” he noted. “The focus has been on transparency, fairness, and making sure the benefits reach genuine fisherfolk.”
Source:
www.ghanaweb.com