Problem Objectives of the Study

43 SECTION C: PREMIX FUEL CASE STUDIES IN THE CENTRAL REGION By Dr. Emmanuel K. Ekumah

1.0 BACKGROUND TO THE STUDY

• Ghana has a long tradition of a very active fishing industry and fish provide an important source of animal protein for most Ghanaians. Ghana’s fishing industry has made tremendous strides over the years, developing from a predominantly traditional canoe fleet to a mix of traditional and modern fleet, including industrial trawlers. Bounded on the south by the Gulf of Guinea, Ghana has a 550 km coastline and a total continental shelf area of about 24,300 square kilometers that support a marine fishing industry Mensah and Antwi, 2006. • Marine fishing is an important traditional economic activity of the coastal communities in Ghana and contributes over 80 per cent of the total fish catch Mensah and Antwi, 2006. The traditional sector accounts for over 75 per cent of the marine catch. The small-scale artisanal marine fishing communities are predominant and are generally characterized by low levels of production, low incomes, poor living conditions and chronic indebtedness Mensah and Antwi, 2006. Due to the poor living conditions of these fishermen along the coast of Ghana the premix fuel was introduced in the fishing industry in 1994 to power outboard engines. This was expected to help artisanal fishermen increase their catch and hence raise their living standard through increased incomes and also augment the fish stock in the country. To further help these fishermen the government subsidized the product to make it cheap and accessible to artisanal fishermen in the coastal and lake regions of Ghana.

1.1 Problem

Majority of Ghanaians who live along the coast are fishermen and engage in the fishing business, therefore, depriving them of the premix fuel is as good as starving them and their dependants Ghanadistricts.com. Ever since the product was introduced into the fishing industry, its distribution has always been fraught with corruption and diversions Mbir, 2008. The problem about the diversion of premix fuel and the resultant shortage of the commodity on the market surfaced once again. The problem got to its peak four years ago, when some politicians in the management and distribution of the product were diverting the fuel with their close collaborators Mbir, 2008. These nation-wrecking activities such as diversion of the commodity, smuggling to neighbouring destinations, and adulterating the product to facilitate usage by vehicles and chainsaw machines, defeated the notion of subsidy and equally made the commodity costly to fishermen. The government put mechanisms in place to check the malpractices that happened in the sector although that did not resolve the matter. Mbir 2008 noted that the management structure of the committee was what crooked politicians and oil magnates sought to destroy to make way for the continuation of their criminal activities. Against this backdrop the premix has always been characterized with inadequacies, diversions, political interferences and corruption. In the midst of all these complexities this research on the premix fuel is a necessary concern in the governance of the coastal areas of the country with respect to their living conditions. 44

1.2 Objectives of the Study

The research was conducted based on the terms of reference so the objectives for the study were formulated to: 1. Trace the historical bases of the premix, 2. Identify the policy objective of the premix fuel, 3. Examine some political issues in the management of premix in the country, 4. Examine the social impact of premix on local livelihoods and fishing efforts, 5. Determine the social impact and management of premix at the local level 6. Identify the possible scenarios of maintaining the subsidy

2.0 METHODOLOGY