The Inquirer (Monrovia)
28 April 2008
An investigation into the present petroleum crisis on the world has revealed that the high world prices may affect the local market.
There are indications as these prices continue to increase globally, the government may make some adjustments in the local price to ensure the continued supply of the commodity.
However, it has been observed that bureaucratic bottleneck is posing serious problems to making adjustments in prices on the local market. Sources said that because the issue of the commodity has been something that has been politicized, some individuals were hesitating to give approval for the adjustments in prices.
The sources said that what is now obtaining on the world Market is something that the country has no control over, therefore, the sources said something must be done to ensure the continued supply of the commodity. The source said no business person would want to do business without profit.
The investigation also revealed that many persons are concerned about what is happening on the global market and that if measures are not taken, this could lead to hoarding, something, that would obviously cause shortage, thereby causing an astronomical increase in the commodity on the black market.
Other sources said that although the LPRC Management has reduced its storage fees by 3-US cents per gallon, totaling at lest 1.5 million US dollars annually to avoid additional hardship on the people, but this could not continue in the face of the high prices on the global market. "It is simple economics that as these prices on the world market continue it would certainly affect the local market; no importer wants to operate at a loss, "one source said.
It has also been discovered that the depreciation of the Liberian dollars over the U.S. dollars was another factor affecting the local market. "Once the U.S. Dollars continue to appreciate over the Liberian dollars, this would always affect prices because it would then mean that an importer will need more U. S Dollars.
The issue of petroleum price became a matter of concern in July 2006 when the price of crude oil was at US$ 732.33 per ton and sold on the local market at US$3.35 per gallon. But since this month the price has risen to US$989.30 per ton on the world market and is being sold on the local market at US$3.80 per gallon. The high prices on the world market have also affected other countries.
According to reports, petroleum is being sold at US$6.25 per gallon in neighboring Sierra Leone, Guinea, Ivory Coast and Ghana.
A source in the government said the continued increase on the world market is a matter of concern to this administration. The source said it is not the pressure of government to make adjustments in local prices, but that it is better to have the commodity available to discourage unscrupulous practices at the detriment of the people.
Asked whether the adjustments are necessary now, the source said the necessary measures or actions in the interest of the country and its people should be taken to ensure the constant supply of the commodity.
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