Dec 13, 2012

LPRC Summersaults: Admits Gasoline Shortage; Terms It ‘Sabotage’

The Liberia Petroleum Refinery Company (LPRC) has made a quick ‘about-face,’ adding a new twist and singing a new tune after rejecting out of hand---in almost unequivocal (no ifs, ands buts) terms---the slightest suggestion that something slippery was taking place, under its nose, with the gasoline business in this country.

Now today, two days after a meeting between the LPRC Board and its management, LPRC ‘bit the bullet’ and admitted that it had ignored the slippery slopes that the global oil and gas business had shaped and ‘copped a plea’ (confessed) that a gas shortage did and still exists in the country after all.
However, there is a caveat (qualification, condition) to its new position: LPRC now claims that “the apparent shortage is purely artificial, malicious and intentional. It is designed as a profit making scheme by some business people to enrich themselves over this holiday period at the expense of the Liberian people,” the petroleum company declared in its release--- agreeing this time around to the very statements it had fought so hard to deny.

The latest petroleum crisis hit shortly after the Ministry of Commerce and the LPRC released a new price ceiling reducing gasoline prices by US$0.20 and diesel (fuel oil) by US$0.10 cents. The new selling price for gasoline has now been put to US$4.23/LD$310, and fuel oil to US$4.51 per gallon which is LD$325.00.

Coming on the heel of the announcement of a change in the price of gasoline, observers say it is obvious that sellers simply spotted an opportunity to increase their profits over the season. Needless to say wholesalers decided to join the Hallelujah Chorus as well, and decided to do what they felt was necessary, given the evolving circumstances (developing situations). Or, had the wholesalers set the whole thing in motion themselves?

As I have been told, LPRC clearly had not anticipated what their action would lead to. No wonder they took earlier suggestions of a shortage lightly, releasing a statement on Tuesday, insisting that a total of 550,000 gallons had been supplied the local market and that it was sufficient to avoid any shortage.

Accordingly, the company vehemently denounced any report of an artificial gas shortage in town; saying that supplies were enough gas to keep the entire country in motion. It went further, warning that “any station or distributor selling above market price would be prosecuted. The management of LPRC is called on the public to report any violation of hoarding to create an artificial shortage and increase prices.”

“Management strongly urged all importers and distributors to desist from any act of economic sabotage which could undermine the stability of the Liberian nation and people. Any importer or distributor engaged in hoarding or any other act that may negatively impact the constant and continuous flow of petroleum products to the people of Liberia will have their importer’s or distributor’s license immediately terminated,” it warned.

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