The NEWS (Monrovia)
3 April 2008
Monrovia — It appears that the vicious circle of hardship brought upon the Liberian people, especially ordinary citizens as a result of prolonged civil war and consistent unprecedented world market forces is far from being over.
This is evident by a recent decision of the Government of Liberia acknowledging the inflationary trend in the prices of some basic commodities including petroleum products, Portland cement and rice, Liberia's staple diet on the world market.
A Government statement issued Tuesday night under the signature of Information Minister Laurence Konmla Bropleh, says the prices of petroleum products and Portland cement on the local market have been increased.
According to the outspoken Information Minister, the current upsurge in the prices of some of the world's basic commodities and the impact on domestic prices has been the focus of government in recent time.
Dr. Bropleh pointed out that the more than 40 percent rise in the world food prices, increases in world oil market prices and the constant decline of the dollar against other international currencies were the reasons for government's approval for price increment.
He said government has been faced with no alternative, but to approve the price rise on certain basic commodities such as cement and petroleum product.
"The Government has taken this difficult decision appreciating that any further delays would ultimately lead to shortages and even higher prices of these goods on the market," the Information Boss added.
Bropleh: "With immediate effect, the Government announces that ex-factory price to cement distributors is US$9.05 per bag and retailers' price from distributors is US$10.45 per bag.
Dr. Bropleh further indicated that CEMENCO and its distributors have signed a Memorandum of Understanding (MOU) in which the distributors have committed to selling cement directly from their various warehouses as opposed to through third parties.
"Those found in breach of this MOU will lose their distributorship," Bropleh stressed.
On the prices of petroleum, the Chief government spokesman noted that a number of global forces are to be blamed for the increase in oil prices above US$100 percent per barrel.
He said the new price ceiling for gasoline wholesale distribution is US$3.60 and retail is US$3.75, while diesel wholesale distribution and retail are US$4.25 and US$4.40 respectively; and kerosene Jet A-1 wholesale distribution is US$4.30 and US$4.45 retail.
Meanwhile, the public has received this latest pronouncement with mixed feelings as many are astonished over the profit margin between the ex-factory price and retail price of cement.
They also questioned the rational behind the decision regarding the soaring petroleum prices without a corresponding transportation price structure for commercial vehicles throughout the country.
One observer told this paper that government's latest justification to increase prices has left many wondering how long it would take a civil servant, with a monthly of salary of US$55.00, erect a simple one or two-bed rooms house.
Still yet, others expressed indignation over the decision, saying they were now left at the mercy of commercial drivers who are already accustomed to overcharging passengers to profiteer.
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