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Gas price reduction should be adhered to

Oct 13, 2015, 10:04 AM

It has come to our notice that the gas price reduction that was announced a few months ago, precisely in July this year, is not being adhered to. As a result, the ministry has reiterated its call through a directive for the price reduction in all sizes of gas bottles to be honoured by dealers of gas in the country.

We, therefore, also chose to reiterate our position on the issue in the interest of the nation.

We have taken note of the new development of gas price reduction being announced by the Ministry of Petroleum.

According to the Ministry, with effect from 1 July 2015, the 3 Kilogram Gas should be sold at D200 instead of D250; the 6 Kilogram Gas at 375 instead of D500; and the 12 Kilogram Gas D730 instead of D1000.

“The Ministry of Petroleum wishes to inform the general public that, after due consultation with the Ministry of Finance and Economic Affairs, the Ministry of Trade, Industry and Employment and the main dealers in liquefied petroleum gas (cooking gas), the selling price for gas as from the 1st of July 2015, has been reduced,” the statement by the Petroleum Ministry announced.

This was welcomed news, especially in the month of Ramadan, when the need for gas really soars and the cost increases.

In the last month or so, reports had it that our neighbouring countries like Senegal did the same; they decided to reduce the price of gas accordingly to commensurate with the new development surrounding world market price for gas and other fuels.

With a constant drop in world market fuel prices over the last few months, many governments around the world have decided to reduce the cost of gasoline and diesel at the pump price, as well as natural gas.

For instance, in January, the United States Energy Information Administration said US households are likely to spend $750 less on gas this year because of the reduction in oil prices. Similar benefits are at the disposal of Europeans and other consumers around the world.

The drop in energy prices, such as gas, would also disproportionately help lower-income earners in countries around the world.

It is, therefore, right and essential that we too in The Gambia give a rethink to the price of gas in the country.

On this note and following this development, we would like to add our voice to the call of the Petroleum Ministry on stakeholders in the market chain of gas products to comply with the new development, and ensure that the gas price reduction is carried out with immediate effect.

“Price is what you pay. Value is what you get.”

Warren Buffett