By Nyima Sillah
The Oil Marketing Companies (OMCs) in the Gambia has admonished the Gambia government to remedy the price of fuel on or by Friday, 5th August 2022 to ensure continuity and stability in the petroleum sector and the economy.
Momodou Hydara, the General Manager of Jah Oil Company Limited said in a press conference held in the GCCI complex that they are unable to continue selling fuel to the Gambian public at the current price set by the Ministry of Finance and Economic Affairs (MOFEA) and Ministry of Petroleum and Energy (MOPE) due to the high cost of fuel which has led to their urgent call for the two ministries to have a review on the current price in consultation with the OMCs to avoid further disruption to the Gambia’s economy which is already in a different situation.
However, he hopes that with the current situation, the government will take immediate and necessary steps to remedy the situation by next Friday to ensure continuity and stability in the petroleum sector and the economy.
However, he disclosed that the pricing of fuel products in The Gambia is 100% regulated by the Gambia government, purchasing and selling prices and determinations of margins are all set by the government which they, the (OMCs) must comply with. He stressed that the prices for August were set by the MOFEA and MOPE without consultations with the OMCs.
“This current pricing means that we will not be able to continue importing and selling fuel to the public as it cannot cover the cost of importation of fuel and other costs not provided for, by the government pricing. You cannot force a shopkeeper to sell a product costing D10 at D7 as it would force the shopkeeper to shut down his business,” he explained.
On his part, Lamin A. Janneh of Sandalle Oil Company lamented anything that affects the importations will technically affect the retail level as well because the cost of fuel importation is huge. “All of us here have a minimum of 50 to 100 staff on our cost. We have other costs like electricity and other operating costs that we need to take care of. So, if we are making a huge loss up the same loss is filtered, and by the time it reaches the bottom we are all selling at a huge loss. As we speak, it cannot be continued, because, at the end of the day, it means we are going to fear bankruptcies straight away,” he disclosed.
