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Momodou
Denmark
11634 Posts |
 Posted - 12 Oct 2022 : 22:38:09
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Government is responsible for high cost of living.
By Madi Jobarteh
The oil marketing companies have just issued this press statement that they will stop selling fuel by Monday October 17.
Their reason is that they are running at a loss simply because the Government is basically grabbing their entire profits hence forcing them into debt.
What can be picked from their press release is that indeed it is The Gambia Government which is solely and squarely making life difficult for citizens. By taking D17.99 being the largest share from every litre of fuel price against a profit margin of D0.79 for the actual fuel sellers, it means indeed the cost of fuel is squarely determined and controlled by the Government.
Meantime the Government spares no effort to boast to citizens that they are spending billions on fuel subsidies. Apparently it is obvious that subsidy is a farce. It is a cover up for corruption where some officials are benefiting but surely these subsidies never benefit the common woman and man.
I have long held that the price of fuel is a hoax and has nothing to do with the Ukraine War or COVID as the Government is always happy to bombard us with. Rather fuel prices are always going up because some officials inside the Government are making millions from so-called subsidies for themselves.
Why is the Government grabbing almost D18 from every litre of fuel? If the Government is truly genuine and interested in reducing the high cost of living why can’t the Government reduce its profit to 10 bututs for every liter?
After all, if fuel prices go down it does not only reduce cost of living but it also generates greater economic activity in all sectors hence also means more revenue for Government through taxes.
Thus what we face is a Government that is not only corrupt and immoral but also insensitive to the welfare of citizens. Look at the GamPetroleum case in which millions were squandered only for the Government, thru the Ministry of Justice to play with the case in the courts leading to it being thrown out.
To cover up their destruction of that case, the Government Spokesman Ebrima G Sankareh had the audacity to lie to citizens that the Government will further investigate that case. But since July and now its October, it is clear that they have forgotten about that massive corruption after they deliberately killed case!
Gambians must rise up to protest against the Government to bring the price of fuel down by removing their profit of D17.99. If the OMCs stop selling fuel by Monday, citizens should know that it is the Government’s fault and the Minister of Finance Seedy Keita should be held accountable.
By now it should be clear to all citizens that The Gambia has a predator government that is incompetent, corrupt, immoral and insensitive to the rights and needs of citizens. They want to grab everything from citizens by any means. It is now obvious that this Government is created and exists only to destroy the soul and future of The Gambia and her citizens! It’s an abominable Government that is good for nothing but a stinking liability and a disgrace!
For The Gambia Our Homeland
- Press Release in PDF
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A clear conscience fears no accusation - proverb from Sierra Leone |
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Momodou
Denmark
11634 Posts |
Posted - 14 Oct 2022 : 09:38:51
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REPUBLIC OF THE GAMBIA
MINISTRY OF FINANCE AND ECONOMIC AFFAIRS
THE QUADRANGLE, BANJUL, THE GAMBIA.
Tel: +220 4225713 /+220 5034521, email: info@mofea.gov.gm
13th October 2022
PRESS RELEASE ON THE ISSUES CONCERNING OIL MARKETING COMPANIES (OMCs)
The Petroleum Pricing Committee has learned with concern the shutting down of operations of Oil Marketing Companies by Monday 17th October 2022.
Oil Marketing Companies have claimed difficulties in key variables of the current Fuel Pricing Structure namely, Letter of credit, Importer margin, dealers’ margin, and foreign currency (exchange rate of the US$).
It should be noted that the pricing committee held a consultation with the OMCs prior to the release of the final price structure for October 2022 and as such it’s surprising that we notice their reaction only through a press release without prior consultation with the pricing committee.
On the issue of the exchange rate, the practice is to use the exchange rate prevailing at the date of the price decision based on the exchange rate submitted by the commercial banks. Any variation between this exchange rate and the future rate is a function of market forces.
The pricing committee will continue to use the exchange rate from the official market as a reference rate in the price structure.
The dealers’ margin as alluded to by OMCs is set at D5.05/litre—it is, however, important to note that this margin was historically at D3.88/litre. To address their concerns about the low margin, the Petroleum Pricing Committee increased this margin to D5.05/litre to allow OMCs to cater for their overhead costs such as transport, utilities, and other expenses associated with their operations.
OMCs also raised concerns about the importer margin of US$50/MT and US$40/MT for PMS and AGO respectively. This margin is normally revised periodically based on market conditions in consultations with OMCs.
In addition to the above, it is worth noting that OMCs/Traders also get a Traders’ Premium of US$90/MT and US$110/MT for PMS and AGO respectively, however, OMCs failed to mention this in their Press release. As determined by market conditions, this premium is also subject to periodic review in consultations with OMCs.
The letter of credit charge of 1.5% is an upward adjustment of 0.5% over the amount obtained from the list of charges as published on the website of the Central Bank. The inability of the banks to issue LC is a business issue for the individual OMCs.
The claim of the OMCs to incur losses has not been substantiated with any financial statements as proof of the said losses and it is surprising how this was possible given the subsidy extended to the sector.
The Petroleum Pricing Committee also wants to inform the general public that the government continues to subsidize AGO (diesel) for D7.03/litre on each litre sold to the general public.
This continued subsidy is primarily to limit the pass-through effects of fuel prices in the transport cost of basic goods and services as a form of social safety net for the vulnerable group of society.
As licensed operators in a regulated market, OMCs are bound by certain guidelines and conduct which is contrary to the observed behavior in the past two months of strikes and threats of strikes. And as partners, the government remains open to discussions and providing long-lasting solutions to both parties.
Finally, the government assures the general public that the supply of petroleum products will be available and will remain resolute to ensure supply to the general public. No effort will be spared to ensure the smooth functioning of the fuel sector and uninterrupted business.
Signed
The Permanent Secretary
Ministry of Finance and Economic Affairs
Download File - File size: 127.94 KB: https://mofea.gm/downloads-file/press-release-on-the-issues-concerning-oil-marketi |
A clear conscience fears no accusation - proverb from Sierra Leone |
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Government is responsible for high cost of living
