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Commerce Minister Blames Shortage of Gasoline on ‘Wrong’ Inventory, Shallow Harbor – FrontPageAfrica

usscmc by usscmc
January 29, 2020
Commerce Minister Blames Shortage of Gasoline on ‘Wrong’ Inventory, Shallow Harbor – FrontPageAfrica
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On Wednesday, the Minister of Commerce and Industry, Prof. Wilson Tarpeh, said the situation is becoming a problem but the government is making interventions that are geared towards preventing a recurrence

MONROVIA – The Government of Liberia’s reliance on an inventory that did not match reality is costing citizens the embarrassment of staying in long queues for hours to buy gasoline which price has also been tripled by some retailers due to an unexpected shortage that is affecting every part of the country.

When the issue first came up, the Liberia Petroleum Refinery Company (LPRC) denied the shortage, claiming there is sufficient gasoline in the country for regular and normal supply. The LPRC also threatened to go after vendors who were creating the artificial shortage.

The National Port Authority (NPA) also vehemently debunked reports of the inability of some tankers to berth at the port since the port has not been dredged since 2016.

Despite the denial, the situation of limited supply of gasoline continue to persist as only two recognized vendors – Petrol Trade (SP) and TOTAL – were selling gasoline, at regular price, too. Other filing stations like Aminata and NP have been out of supply for the last few weeks.

Vendors selling in jars popularly known as ‘can boys’ have been doubling the price of the product due to long queues and limited supply at the only two filling stations selling at regular price.

Hike in Price

The approved price per gallon is L$650, but the short supply has created the opportunity for the sidewalk vendors to now sell a gallon of gasoline for L$1550. In effect, commercial drivers have begun hiking transportation fares.

A trip from Ganta to Monrovia which hitherto cost between LD$1,100 and LD$1,200, saw commercial drivers charging commuters LD$2,500 to LD$2,600.

Transport fare from Gbarnga to Monrovia that used to be LD$800 had jumped to LD$1,500.

Also, from Ganta to Zwedru, Grand Gedeh County, the transport fare has been increased from LD$ 6,000 to LD$10,000.

Protest in Buchanan

On Tuesday, bikers in Buchanan, the Capital of Grand Bassa County which is just a two-hour drive away from Monrovia took to the streets in protest over the lack of gasoline in the county. 

The protesters started their action by 5 Am on Tuesday, halting normal movement of citizens and vehicles.

Victor Joe, head of operations for the Grand Bassa County Motorcyclists Union, told FrontPageAfrica that their action will continue for the next couple of days if nothing is done to solve the situation of gasoline shortage.

“No job in this country; we the motorcycle riders are struggling to cater to our families through motorcycle, and for the past one week we being buying gas for L$1000 per gallon just to hustle but for the past three days we can’t even see a half gallon of gas to buy,” Joe shouted amid rants and chants by dozens of other motorcyclists.

He further stated: “Almost all our bikes are out of gas and we can’t bear it anymore.”

Since last week, hundreds of motorcycle riders and drivers often made their way to the only Total gas station in the county to get gas. They have complained that they don’t get served.

Total is the only major gas station currently selling to the local people for reasonable price due to the acute scarcity of gasoline.

Private: ForumSyd

Min. Tarpeh Admits

“4.4 million gallons of gas is what the importers have on their inventory, but when the actual volume in the tanks was calibrated by LPRC that amount is substantially low, so, there was a big difference and the question is ‘what happened to the gas that was in the tanks?’ and that question is something that we have to answer at a later date.”

– Prof. Wilson Tarpeh, Minister of Commerce

The situation has become too glaring that government cannot continue the denial. On Wednesday, the Minister of Commerce and Industry, Prof. Wilson Tarpeh, said the situation is becoming a problem but the government is making interventions that are geared towards preventing a recurrence. 

He told FrontPageAfrica that the Ministry and the LPRC were misled by the inventory of stock they had in the tankers.

“4.4 million gallons of gas is what the importers have on their inventory, but when the actual volume in the tanks was calibrated by LPRC that amount is substantially low, so, there was a big difference and the question is ‘what happened to the gas that was in the tanks?’ and that question is something that we have to answer at a later date,” he said.

According to him, the 4.4 million gallons that reflected on the inventory could have supplied the country for 26 days.

He also confirmed media reports that the because the Port has not been dredged for a couple of years, some tanker vessels can no longer dock at the Free Port.

“The other problem is no secret, it’s the port. We have some ships coming in, 10.3 meters, they need more than that, 14 meters, 16 meters they need but we don’t have it so it’s shallow and because of that the larger ships are not able to come,” he said.

Min. Tarpeh said due to the limited availability of gasoline now on the market, only TOTAL and Petrol Trade have gasoline in large volume which has now put some pressure on them.

“In fact, the we’ve even taken a decision to plead to those who have to pump product to those who don’t have and it includes those stations which service our young people including the pehn-pehn and keh-keh riders,” he said. 

He said there is a ship coming on Wednesday with about 2,700 metric tons that can provide for eight days of supply. He also disclosed that another tonnage is expected in the country over the weekend.

According to Min. Tarpeh, the current situation is expected to last a about a week before the situation comes to normality. “But again, it depends on the number ships that would be coming. This Ministry is working with LPRC to bring additional quantity,” he said.

Summoned by the House

Meanwhile, in the wake of fast gasoline decline on the Liberian market, the Plenary of the House of Representative his invited the Minister Tarpeh and the Managing Director of the Liberia Petroleum Refining Company (LPRC), Marie Urey Coleman to give reasons behind the shortage.

Plenary’s decision was triggered by a motion filed by Rep. Francis Sakila Nyumalin (District #1, Lofa County) on Tuesday, calling for Prof. Tarpeh and Mrs. Coleman to appear before plenary on Thursday, January 30, 2020 at 10:am.

Rep. Nyumalin’s motion was based on a communication from Rep. Alexander Poure (District #1, River Gee) craving plenary’s indulgence to invite the two officials to explain in detail the reasons behind the shortage of petroleum products on the market.

Rep. Poure, in his communication on Tuesday, January 28 said the situation has led to a sharp increase of transportation fare across the country, and as the people’s deputies, the House should give ‘serious’ attention and engage relevant authorities to address the situation.

Rep. Nyumalin, setting the bases for his motion, said the situation was affecting ordinary Liberians, and it would have spilled over to government if most of the vehicles were consuming gasoline.

Gerald C. Koinyeneh, Selma Lomax in Gbarnga, Bong County and Elton W. Tiah of Buchanan, Grand Bassa County contributed to this story


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