PHOTO: Frustrations at the pumps and petrol outlets in Gbarnga
By J. Peter S. Dennis,dennisrealone@gmail.com
GBARNGA, Liberia- The Central Bong County has been it by petroleum shortage, as residents have formed long queues to obtain a petrol at an exhobitant price, a situation that is similar in the capital, Monrovia.
Many citizens here including motorists have since been seen stranded and forming queues before Total Gas Station and other mini filling stations in Gbarnga, due to the difficulties in getting their needed petroleum products.
Currently, there’s no stable price for a gallon of gasoline in Gbarnga, Bong County. At some places, a gallon ranges from a thousand Liberia dollars to 1,300 LD, respectively.
Only Total Filling Station is operating with a price of 725LD ($4.8 USD) but it’s an uphill challenge in getting you served, as motorists woke up as early as 4AM to form queues waiting to be served hours later at 8Am.
A gallon of gasoline was previously sold between $600-650LD, but it has adversely doubled.
Increment of prices and transportation are not anything to mention as it’s imperative, considering the challenges associated in getting a droplet of gasoline.
Currently, from Gbarnga to Phebe (2 kilometers) transportation has increased by twice to 300 LD over motorbike; the fastest and easiest route of transportation in Liberia.
It’s no secret that citizens aren’t happy with this increment with many attributing it hoarding, while some to the Russia-Ukrainian invasion. Due to its invasion of Ukraine, the Russian Federation has been bombarded with a long list of sanctions coupled with condemnations.
Russia is the producer of one out of every 10 barrels of oil consumed by the world, according to the New York Times, making it the third-largest oil producer in the world.
On Friday, United States Secretary of State Antony Blinken downplayed the notion of sanctioning Russia’s energy sector arguing that the United States has “no strategic interest” in doing so.
Additionally, reports have shown that the U.S. is buying 650,000 barrels a day from Russia, which some have argued is essentially financing Russian President Vladimir Putin’s war machine.
Citizens in Liberia upset by shortage, hike in price
Rufus Togbah, 35, a motorbike rider with three kids says “My brother we don’t even know what is happening about gas. These people are keeping the gas from us. When we go this way, we can’t find gas to buy. I will not lie, if I don’t get gas to rent, it will not be easy on my family”.
Anthony Flomo, who rents for another person, believes it will be devastating on him were him not to find gas for commercial purpose as he will lose his weekly susu.
“Let me tell you, even I can find a gallon now, I will buy [it] with any amount because if I don’t get gasoline today or tomorrow, my susu will fall on me. If I don’t put my susu, it will go against me. My boss man will also take the bike from me” he said.
Mr. Patrick Cooper, 46, has a family of eight (8) members and lives in Gbarnga. He says due to the reported fluctuation of electricity in Gbarnga, he has since returned to operating a family generator, but became shocked when the price galloped to 1,300 LD. “My children and I will manage the home like this until things can return to normality”.
Moses Taylor, an advocate in Totota, Lower Bong County attributed the situation to the Russia-Ukraine saga.
Princess Gowee, a student of CU’s International Relation says “I saw this coming when Russia tries to invade Ukraine considering their contributions and economic impact in the world. If the action doesn’t stop, we will encounter it greater than this. As you’re aware, many countries have already condemned and sanctioned Russia. Their planes can’t easily make a move out of their country due to the sanctions. How do you expect the remaining nations to have supplies of petroleum products when Russian goods or products are almost being banned?”
Liberian Banker, Cornelius Poneys has warned about the rise in petroleum prices, given the global implications of the Russia-Ukraine war.
“Liberians, we gotta brace ourselves for the ripple effect the war lashes at global trade. Expect Petroleum products to go up by approx 30% if the current trend continues. We may be paying up to $7 per gallon of gas.”
Also, Liberian economist Alieu Nyei has these suggestions:
“In Liberia, the prices of petroleum products are set by the Government. This means, when prices are set too low, importers are disincentivized to bring in products, leading to shortages and higher prices. No government wants to be seen regularly increasing prices but not doing so when there is a compelling need creates shortage of the products.
Liberian Gov’t says it’s artificial shortage
The government of Liberia is faced with two options, both of which have consequences. It can either suspend portion of levies/ duties to keep prices affordable or it must increase the prices of petroleum products so that importers are incentivized to bring in products to serve the economy.
Suspending the levy will create budget risks and the need to do a downward adjustment of both revenue and expenditures. On the other hand, increasing prices of petroleum products will impose more suffering on us the masses.
We need to keenly watch which option the government will choose.”
This situation has caught the attention of the Liberian government clarifying that there is more than adequate supply of petroleum products in country to serve the local market for the next several months and that there should be no reason for panic buying of gasoline or diesel fuel.
The statement issued by the Ministry of Information, Cultural Affairs and Tourism on Saturday, March 5, 2022 under the signature of Minister Ledgerhood Julius Rennie, also warns the public and unscrupulous individuals against hoarding of the products as it will not tolerate such illegal acts.
The Liberian government acknowledged that the prices of gasoline and diesel fuel have increased globally as a result of the ongoing military conflict between Russia and Ukraine which has affected supply chains.
The statement added that the Government of Liberia, through the Ministry of Commerce and Industry, LPRC and other relevant agencies have been engaged with importers for adjustment in the pump price of diesel fuel and gasoline to account for the current increase on the international market to ensure availability and avoid loss to the importers.
“An arrangement has been agreed with the importers that will ensure continuous lifting of petroleum products for the various filling stations while discussions continue to conclude on a new pricing structure. The public is therefore assured that gasoline and fuel will be available at the major filling stations as the importers lift their products throughout the weekend.
The Ministry of Commerce and the LPRC will remain engaged with the Importers to derive a mutually acceptable price structure for the petroleum products in light of the global increase in the prices of petroleum products” the statement concluded.