IPNEWS: With less then two weeks in office, Amos Tweh,Managing Director of the Liberia Petroleum Refinery Company (LPRC), and Amin Modad, Businessman turned politician, have jointly announced the increment of gasoline and fuel pump prices.
According to a release issued in Monrovia, the Ministry of Commerce and Industry, in collaboration with the Liberia Petroleum Refining Company (LPRC), stated that it had adjusted the prices of gasoline (PMS) and fuel oil (AGO) to reflect international market rates as of Friday, February 9, 2024, by four United States Cents in the pump price of Gasoline while fuel oil price is now increased by twenty-two United States Cents.
The move has created misfeelings across the Capital Monrovia, owing to the ‘RESCUE MISSION’, promising to bring economic stability to the country.
According to a release, the new wholesale and retail prices stand at US$4.73 and US$4.15 for gasoline, with corresponding pump prices of US$4.43/LD850.00 and US$5.01/960.00LD respectively.
The government says these adjustments, are the international market and exchange rates to ensuring accessibility and affordability of petroleum products.
At the moment, the Central Bank of Liberia’s exchange rate stand at US$1 to LRDS 192.00.
The release further states that the Ministry of Commerce Inspectorate Team will rigorously monitor these approved ceiling prices, aiming to prevent unwarranted price hikes in the local market.
“Importantly, the ministry of commerce will closely monitor the price circular to ensure importers do not undercut fellow competitors on the market.” The joint release stated.
At least it’s been more then two years when the the Ministry of Commerce and the Liberia Petroleum Refinery Company (LPRC) announced an increment of US$1.16 on gasoline while diesel fuel was increased by US$1.47 taking the retail price of gasoline is now US$5.66 (L$875) while diesel fuel is US$6.00 (L$930).
Unfortunately, the Joseph Boakai government has made no mention of the wholesale price prior to the increment announced Friday.
Despite the increment in the price of petroleum products on the international scene, Liberia seems to be the country in the region with one of the highest costs of gasoline and fuel. The cost of gasoline in the country is now higher than the daily minimum wage for unskilled laborers which stands at US$5.50 per day and US$3.60 per day for domestic laborers.
Comparing Liberia price of petroleum with neighboring countries, both products are sold for US$4.12 in neighboring Sierra Leone. In Guinea, a gallon of gasoline is sold for US$4.23. In Ghana, it’s US$4.50. Ivory Coast now sells a gallon of gasoline for US$4.11.
According to the Unity Party then, it strongly believes that the Weah-led government can circumvent the shock on the economy despite the ongoing Russia-Ukraine crisis. The Unity Party noted then that the CDC government is using the situation to exploit Liberians.
“Liberian consumers have been faced with soaring food prices and transportation fares since the inception of the CDC government. To compound this, salaries were dramatically reduced for many while a few saw minimum increase through an unpopular harmonization scheme. Available data show that about 65% of our population live below the poverty line while approximately 1.4 million Liberians are living in abject poverty with an estimated 500,000 -600,000 at higher risk of falling below the poverty line,” the Unity Party indicated in a statement.
The former opposition party called on the Weah-led government to absorb the economic shock being caused by the war to providing subsidies or lowering the tariff on political commodities.
“For example, the government currently levies: U$0.30 per gallon for Road Fund, U$0.20 per gallon for GST, U$0.25 per gallon for Import Duty, U$0.30 per gallon for LPRC storage, U$0.15 per gallon for Excise and 1.5% of the Cost, Insurance and Freight (CIF) value as Custom User fees, excluding Port charges. During this period of crisis, one would hope that the government would make a temporary reduction in these charges so as to reduce the transfer of burden on its citizens. Additionally, this is the time when prudent AUSTERITY measures and fiscal discipline should be championed by the president; perhaps this is where reallocation of funds from the “Special Presidential Projects” should go to subsidizing the global increment in petroleum products,” the Unity Party stated.
