Gambia Democratic Party Leader
Sequel to the decline in oil prices globally, the Gambia government has responded in this direction by reducing D2 per litre, I write to register my appreciation to the government for this move on behalf of the Gambia Democratic Congress.
We are with the strong conviction that high pump prices only resulted in hardship in the country, on the drivers, dealers and the commuters. It is a known fact that fuel price has gone down all over the world and nations have responded to this reduction earlier knowing the economic and social dislocation of businesses and movement of people, goods and services warranted their immediate actions.
As announced by the government in their presser to sell a Petrol litre at D77.89, and D73.00 per litre for Diesel is still high compared to the sub region-pumping price.
The table below gives an in-depth overview of understanding of the fuel importation process including the charges and profit margin by both the government and the dealers.
FUEL PRICE STRUCTURE
I am putting it to the government that going by this table that interpreted the whole process has raised more questions than answers for the government over the pumping price. Why does the fuel pump price currently remain at D77.89? Why the D2 reduction instead of D9.94? Where is the D9.94 going?
Accordingly, I have been informed that The Gambia consumes 5m litres of Petrol and 10m litres of Diesel per month which I stand to be corrected and if this is the reality on the ground, more attention and cooperation should be given to this sector for its smooth running.
Upon receiving the news that there is dollar shortage in the Central Bank of The Gambia, the country has a very low supply of U.S. dollars in its reserves to effectively conduct international trade. We believe this happens because our net outflows of USD outweigh its net inflows.
I am made to understand that the dealers could not import fuel for this month of October because their LCs are not cleared; and with these trying times, it is likely that the available fuel might run down at any time and put back the country in a restless state as Gambia National Petroleum Corporation (GNPC) would not be able to meet the high demand of the public.
Moreover, the fact that the exchange rate for the dollar is more profitable within the sub region has warranted dealers selling their dollars within the sub region in foreign currency only to convert it into Dalasi to make more profit than selling it locally at the rate of D55.
Finally, I call on the National Assembly special committee on trade to immediately open an investigation and to liaise with the Ministry of Finance and the fuel dealers to resolve this contention between them with immediate effect for the interest of the nation.
Source: Gambia Democratic Party (GDC) Leader
