The Government of the Gambia has stepped in to subside the price of petrol to mitigate the impact of the COVID-19 pandemic on lives and livelihood of its people.
From today, the a litre of petrol has fallen from D49.36 to D40 while diesel fell from D50.04 a litre to D43. The price of kerosene, which is used by a large percentage of rural Gambians to power hurricane lamps fell from D41.35 a litre to D30 .
A statement from the Ministry of Finance and Economic Affairs said this ‘goodwill’ gesture is aimed at ameliorating the cost of fuel on transport operators in light of the presidential directive to limit the passenger capacity of commercial vehicles.
Since February 2020, the government has made a cumulative reduction of D12.62 (25%), D11.94 (23%), and D19.23 (44%) on the price of petrol, diesel, and kerosene, respectively.
Similarly, the Ministry of Finance and Economic Affairs, in collaboration with the Ministry of Higher Education, Research, Science, and Technology has announced a D29.1 million Student Relief Package for Gambian students abroad.
According to the ministry, D12, 915, 880 has been allocated to benefit 836 non-government funded students while D16.2 million will go to the government-funded scholarship package.
The relief package is designed to support the feeding and sustenance of both government-funded and non-government funded Gambian students around the world.
Why is price of petrol falling?
Here are the realities.
1. Surplus. Saudi Arabia and Russia engaged in a foolish production war that resulted in the open market oversupply.
2. Covid 19 lockdown reduce consumption and demand by fewer car users, airline users, factory users. More oil unused.
Now you have too much oil, fewer users = Flooded market = LOW PRICE.
There is so much oil and no where to store them, producers are begging buyers in some cases paying buyers to take the oil, hence you see $-xx/ barrel.
Now back to our government claim. Ladies and Gentlemen the low prices are a result of market forces, not because of some generosity.
If the government wants to help us, give us cash. Of course that’s wishful thinking.
God Help The Gambia.