Government to commission automation of Premix Fuel Distribution System

The Ministry of Fisheries and Aquaculture Development (MOFAD) in collaboration with Fuel Automation Ghana Limited and its technical partner, Universal Engineering & Consultancy Services Limited as well as its local and foreign funding partners will on 29th August 2023 officially commission the Automation of Premix Fuel Distribution System at Elmina in the Central Region of Ghana.

This laudable and innovative project will be commissioned by H. E. Dr. Mahamudu Bawumia, the Vice-President of the Republic of Ghana.

The full Automation of the supply and distribution of Premix Fuel has been on the table of previous Governments but largely due to financial constraints it was difficult achieving it.

The supply and distribution of Premix Fuel in the Fishing Industry was introduced in 1994 with the sole objective of powering outboard engines and helping Artisanal Fishermen to increase their catch. This laudable initiative raised the living standards of the fishing communities as well as increased the supply and demand for fish stock in Ghana. The decision to subsidize Premix Fuel eventually made the product affordable and available to the fishing communities.

Under the current Government, the full Digitalization of the supply and distribution of Premix Fuel started with a Public-Private Partnership with Fuel Automation Ghana Limited.

*Challenges Associated with the Premix Fuel since 1994*

Smuggling, Diversion, Hoarding, Shortages and Politicization have been the major setbacks for the supply and distribution of Premix Fuel in Ghana since 1994.

Statistics from the National Petroleum Authority (NPA) indicate the following Premix Consumption between 2018 and 2022(Consumption in millions):

2018 -73

2019 -72

2020 -101

2021 -104

2022 -39

Between 2018 and 2022, a total of 392 million litres of premix fuel was supplied to 300 landing beaches across the country.

However, despite efforts to supply Premix Fuel to the fishing communities, available data indicate that the following quantities of Premix Fuel were diverted in 2017 alone:

1. 148, 000 litres in January

2. 54, 000 litres in February

3. 297, 000 litres in April

4. 364, 000 litres in May

5. 270, 000 litres in June

6. 459, 000 litres in July

7. 648, 000 litres in August

8. 1, 107, 000 litres in October

The worrying trends of Premix Fuel diversion, smuggling, hoarding and politicization always lead to shortages of the product in the market. Hence the best solution to address these challenges was to fully Automate the supply and distribution of the product. However, Financing was the major setback for previous Governments to undertake the full automation of the Premix Fuel Distribution System in Ghana.

*Novelty Intervention by Fuel Automation Ghana Limited*

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.

The Ministry of Fisheries and Aquaculture Development after due process under the Procurement Act, engaged the services of Fuel Automation Ghana Limited and its technical partner to develop and build Landing Beach Fuel Outlets and Automation Solutions for 300 Landing Beaches across the Country under a Public-Private Partnership of Design, Build, Operate and Transfer(DBOT).

*Financing of the Project*

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.