Dec 11, 2012

Who’s Withholding the Gas?


Some customers spent more than two hours in queues at various filing stations across the city on Monday

Could the Government’s professed reduction in the price of petroleum products end up being of hindrance rather than of help to the general public?

The new price ceiling reduces gasoline price by US$0.20 and diesel (fuel oil) by US$0.10 cents. The change in the current price was precipitated by the global trend, the Ministry said. It then put the new wholesale price for gasoline at US$4.05 and retail at US$4.33.  The new retail price set forth by the Commerce Ministry for gasoline is US$4.23 or L$310 and US$4.51 or L$325 for diesel.

However, this latest development has been met with an artificial gas shortage on the local market. This begs the question: who’s withholding the gas, even though the Liberia Petroleum Refining Company (LPRC) has vehemently rejected the suggestion of an artificial shortage of gas on the market.

“There is no shortage of petroleum products on the market. There are enough products to serve the entire country,” the petroleum company said in a statement. Yet, since last week Monday, through yesterday, long queues of motorists continue to swell at the various filling stations across the city in search of gasoline to fuel their vehicles for the day.

If, as LPRC claims, there are enough products on the market to serve the entire country, then who’s creating the shortage?

Several petrol stations in the city, especially Total, Super Petroleum and Liberia Petroleum have been blamed by many for creating an artificial shortage of gasoline. Some consumers have clashed with pump attendants who refused to sell gas. Some petrol pumps are mincing on quantity of gas sold per customer, leaving motorcyclists to be the main beneficiaries. By 11:45 a.m. yesterday, a Total service station along the Robertsfield Highway compelled drivers to pump no more than one gallon of gas into their vehicles.

I received a call last night from the ongoing National Vision 2030 conference in Gbarnga and was informed that commuting around that part of the country was seriously hindered by the artificial gas shortage.

I think this situation runs the risk of undermining the success of the National Vision 2030 exercise. It is also creating boundless embarrassment for citizens who are compelled to bear the brunt of remaining in queues for hours only to be served a gallon of gas.

The Government should take certain immediate and decisive measures to resolve this situation.

The direct link between power generation and GDP must not be ignored -- not here, not ever. Any nation on a growth trajectory -- such as Liberia -- needs constant, reliable power to sustain and accelerate such growth.  Liberia is still heavily dependent on off-grid petroleum-generated power for electricity. The country's road transport sector is already strained in its capacity to support the movement of people, goods and services around the country. Both situations are significantly impacted by the availability and rising cost of petroleum, arguably the most sensitive commodity of our national and global economies. 

Will the Government of Liberia allow a few individuals to exploit the country's fragile situation and hijack the hard-earned growth of the economy and progress of its people? Will commuters and motorists sit supinely and take the exploitation? Will Liberians as a people allow their National Vision for the next 18 years to crash before it begins? Perhaps only time will tell. But if we ever find ourselves answering "yes" to any of the above questions, then like the country running on one bridge, we shall find ourselves -- two decades down the road -- as a country still running on one gallon. God forbid!

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