The Chief Executive Officer of the Centre for Energy and Sustainable Management (CEMSE), Benjamin Nsiah, has urged the Ghanaian government to scrap the country's premix fuel subsidy. He argues that the current input subsidy regime does not promote efficient use of resources and continues to put pressure on government revenue. Nsiah made these comments on the sidelines of a media training organised by the Chamber of Oil Marketing Companies in Accra on Tuesday, September 29, 2026.
According to Nsiah, the premix fuel subsidy system creates room for the subsidised product to be diverted and sold at significantly higher prices, defeating the purpose of the policy. He noted that premix fuel is currently subsidised by about GH¢8 per litre, but the product is sometimes sold at about GH¢10 per litre at the pump despite being expected to sell for around GH¢5. This has led to inefficiencies and a lack of transparency in the distribution of subsidized fuel.
Nsiah proposed that the government redirect resources currently used for the premix subsidy towards credit facilities and the expansion of fishing infrastructure. He suggested that fisherfolk could be supported to acquire better boats and other equipment to increase their catch and reduce Ghana's reliance on imported fish. This approach would encourage efficiency while ensuring that public resources are directed towards increasing production in the fishing sector.
The CEMSE CEO recommended a productivity-based credit subsidy for fisherfolk, where government support is linked directly to output and encourages fisherfolk to improve their operations. He stated that resources currently committed to the premix subsidy could instead be channelled into expanding the fishing fleet and improving production infrastructure to increase domestic fish supply. This approach would promote sustainable fishing practices and improve the livelihoods of fisherfolk.
Nsiah's proposal is based on the understanding that the current premix subsidy regime is not achieving its intended objectives. He argued that a productivity-based subsidy would be more effective in supporting the fishing sector and promoting sustainable fishing practices. The Chamber of Oil Marketing Companies' media training event provided a platform for Nsiah to share his expertise and insights on the premix fuel subsidy and its implications for the fishing sector.
The Ghanaian government's premix fuel subsidy has been in place for several years, with the aim of supporting fisherfolk and promoting the fishing industry. However, Nsiah's comments suggest that the policy has not been effective in achieving its objectives and has created unintended consequences. His proposal for a productivity-based credit subsidy has sparked debate and discussion among stakeholders in the fishing sector.
The implementation of Nsiah's proposal would require significant changes to the current premix fuel subsidy regime and would likely involve consultation with various stakeholders, including fisherfolk, oil marketing companies, and government agencies. If implemented, the new policy could have far-reaching implications for the fishing sector and the broader economy. Key stakeholders will be watching closely to see how the government responds to Nsiah's proposal.
Key points
- CEMSE CEO Benjamin Nsiah calls for scrapping Ghana's premix fuel subsidy due to inefficiency and diversion of subsidized products.
- Nsiah proposes a productivity-based credit subsidy for fisherfolk to promote efficient use of resources and increase production in the fishing sector.
- The implementation of Nsiah's proposal could have far-reaching implications for the fishing sector and the broader economy.
