APC blamed over fuel increase
The opposition Sierra Leone Peoples Party (SLPP) Wednesday laid blame against the APC for the recent increase in prices of petroleum products.
At a press briefing held at the SLPP head office on Wallace Johnson Street Freetown, it was expressly revealed that statements made by a state functionary – so to say- the Minister Trade and Industry disclaiming that his government (the APC) has no hand in the determination of fuel prices seemed to be a complete deception to society generally.
“Domestic fuel prices are determined by world market price (usually quoted in dollars) and the exchange rate of the Leone to US dollar,” the SLPP release stated.
“This means that when the world market price is US$100 per barrel and at an exchange rate of Le3,000 to US$1, in Leone terms, the price is Le300,000. With a decline in the exchange rate to about Le4,300 to US$1, the price per barrel in Leone is Le430,000. Obviously, the pump price is expected to be higher at a rate of Le4,300 than Le3,000 to US dollar even when the world market price rises to US$120 per barrel and there is an appreciation of the Leone to Le3,000, in Leone terms the cost per barrel is Le360,000 far less than Le430,000 at a rate of Le4,300 per US dollar.”
By the aforementioned quote, it means that government is likewise responsible for the control of pump price of fuel through its management of the foreign exchange.
It is disclosed also that some US$ 10 million was inherited in reserves of the ‘strategic stock fund’ by the APC.
That the ‘strategic stock’ provides resources when there is a shortage to cushion the effect of price increases.
It could be recalled that the Minister of Trade and Industry, Richard Conteh, recently called up an emergency press meeting to refute rumors that government bears hand to the increase of petroleum products.
It is also a fact that the Minister of Information and Communication, Ibrahim Ben Kargbo, on a number of occasions has disapproved public perception that government is responsible for the increase of the price of fuel oil.
Notwithstanding government’s disclaimer of its involvement in the determination of the price of fuel, it was however rebutted that it is the duty of government to consciously control the foreign exchange rate to meet the price of fuel across the globe.
“With poor revenue base amidst other priorities, the capacity of the government to subsidise essential commodities like fuel has been eroded,” SLPP J.J Saffa told radio 98.1 FM.
“A responsible and a pro-poor government would have projected fuel price increase in the ensuing years after 2008 and planned accordingly how to mitigate its effect on the poor.”
Findings by this press indicate that the fuel crisis is causing hardship in society.
Commercial drivers and business people have had no choice, but put prices high up nay inflicting the unavoidable adversity and poverty society now sensed.
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