The NEWS (Monrovia)
24 September 2007
The Liberia Retailer Association of Petroleum Products has written the House of Representatives expressing concerns over what it termed as "violation of the Liberianization Act" by the French petroleum company, TOTAL.
In their letter of September 19, 2007, the petroleum retailers are alleging that TOTAL was retailing through a service station in Sinkor in contravention to "the spirit and intent of the Liberianization policy which was promulgated purposely to catapult indigenous Liberians into the mainstream of the nation's economy."
The retailers urged the House of Representatives to intervene and said that they, "interpose no objection to the construction of modern stations by TOTAL, but these stations should be franchised to indigenous Liberians "
Meanwhile, the Managing Director of the Liberia Petroleum Refinery Corporation Harry Greaves could not confirm nor deny that TOTAL was retailing petroleum products from its filling station in Monrovia, but said extensive discussions were held between the company and the Ministry of Commerce to franchise their filling stations.
Officials at the commerce ministry could not be reached up to press time.
Investigation continues. Meanwhile,The French petroleum company began creating a stiff competition within the petroleum supply market in Liberia last weekend by launching the first of one of its 20 (level one) filling stations in Monrovia.
Liberia's vice president Joseph N. Boakai was at the launch and projected what TOTAL's competition would mean when he disclosed plans by the government to get rid of makeshift filling stations in Monrovia and its environs.
But it is not known whether TOTAL has or would be franchising its filling stations.
However, the Liberian vice president said it was important for petroleum dealers to transform their makeshift filling stations into modern facilities to boost the Liberian economy.
He said it was the duty of all Liberians to ensure that the country takes a new shape and create an image that would make the international community understand that the country was ready for development.
The vice president assured the management of TOTAL of government's commitment to protect the company's interest as it embarks on the development process of the country.
He also lauded TOTAL's management for creating job opportunities for Liberians; adding, "the construction of filling stations by you would greatly buttress government's (efforts) in the provision of jobs for its people."
Boakai admonished the local staffs at TOTAL to perform with honesty and distinction.
The Chairman of TOTAL-West Africa, Jean Denis Royere said his company was in Liberia to help with development.
Royere reiterated that TOTAL would construct 20 modern filling stations throughout Liberia which he believes would help reduce the unemployment rate among Liberians.
For the last 17 years (1990 - 2007) there have been proliferation in the manual sale of petroleum products at makeshift filling stations. In most instances the products are sold along street corners in sorts of cans and mayonnaise jars as well as in vegetable oil containers.
This deteriorated condition was a result of the 14 years (1989 - 2003) of civil war which left the West African country with massive property destruction and economically wretched.
Most local retailers of petroleum products do not seem to have the financial clout as TOTAL in constructing modern facilities to provide quality services.
An increase in TOTAL's operation in the country could therefore attract valued costumers and thereby squeeze many locals out of the retail petroleum market. That is, if the locals do not find a competitive strategy to maintain a significant market share.
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