47 farmers pleaded with the then Government to re-introduce the premix which was suitable for
their outboard motors. After a year of research by the Ghana National Petroleum Co- operation and Tema Oil Refinery they came out with a fuel combination with an octane rating
of 8284 and a blending rate of 22:1 volume of lubricant. This new product was finally announced on the 9 May 1995 and this was subsidized meant solely for canoe fishermen.
After its introduction a ministerial committee was set up to see to its distribution and effective management. Again this product was equally subsidized and was sold at designated
centres which were called service centres and these service centres operated like co- operatives. Premix was sold to fishermen through associations formed by these fishermen
such as the Ghana National Association of Canoe Fishermen, and Ghana Inland Canoe Fishermen.
3.3 Objective for the Programme
Before the official introduction of the premix in 1995 and after the withdrawal of regular gasoline in 1990 fishermen were using super premium with lubricating oil as the fuel for
powering their two stroke engines. This combination was most unsuitable for two reasons. First the premium petrol was expensive and secondly the high octane rating 9091 of
premium and the excessive heat generated out of the outboard motors rather shortened the lifespan of the outboard motors and consequently increased cost of operations to these
fishermen. It necessitated the introduction of a suitable fuel at an affordable price to fishermen. The objective for the introduction of premix was to make the fuel available to
fishermen at an affordable cost. The fishermen along the coast largely depend on premix for their fishing operations and therefore to make them have access to premix at a reduced cost
meant improving their livelihoods and constantly keeping them in their jobs as fishermen. This meant that the product was to be subsidized at a greater cost so that it can be affordable
to fishermen. The government at the time asked the oil marketing companies supplying the product to subsidize the product and overtime the government took over the subsidy
component because the oil marketing companies did not see it as profitable. For instance in 1991 when gasoline was sold at ¢9,000 the cost of premix was ¢45,000 a subsidy of about
100 percent. Even in 1993 when petrol price went up to ¢1900 the price of premix remained at ¢45000. There was also a premix fund set up by government where a percentage was
added to the price of premix and this margin was put into a premix fund meant for taking care of the needs of fishermen such as buying of nets, outboard motors and others. Again the
purpose of introducing premix was to have a system of premix supply that can generate enough funds to cater for the critical needs of the fishermen.
3.4 The Policy on Premix Subsidy
The introduction of premix was basically meant to power the outboard motors used by fishermen and as the use of these outboard motors became common there was an increased
demand for premix. Therefore the National Democratic Congress’s government introduced premix and officially announced it on the 9 May 1995. Since the inception of the product
there has always been a subsidy on the product first owing to the high cost associated with the blending of the product and secondly the desire of the government at the time to make the
product available to fishermen at a reduced cost. Therefore the margin of the subsidy has also undergone change depending on the political demands of the time. The first introduction of
the premix in 1991 saw a subsidy of 100 because while gasoline was sold at ¢9000 that of premix was sold at ¢45000. In 1993, when petrol went up to ¢1900, that of premix remained
at ¢45000 a subsidy of 150. The percentage was just a government intervention to make the product affordable to the fishermen. But interestingly, there was no government white paper
or legislation that mandated the introduction of the subsidy and how it should be controlled.
48 The subsidy therefore existed until in the year 2000 when the New Patriotic party came to
power. During the era of the New Patriotic Party the subsidy still existed. Though the focus of the premix in terms of structure changed the subsidy continued to be there and during this
time the subsidy was pecked at 50 which is a reduction from the National Democratic Congress party. The subsidy still remained a decision by the government of the day. Though
the National Premix committee was in existence they did not take decisions regarding the subsidy. In two such cases a member of the national premix committee maintained this
position that there is no legislation to the effect that premix should be a particular focus. This was also confirmed by the office manager of the National Premix secretariat. According to
the manager the subject of the policy is not the remit of the National Premix Committee; the subsidy is a political decision that a government promised the people to make premix
affordable and available. Following from the foregoing, for the regime of every government, the component of the subsidy depended on how government wanted to reach out to the
fishermen as the availability of premix meant fulfilling campaign promises.
3.5 Political Issues and Management of Premix
