Geology Department clarifies confusion over price of construction sand across Gambia

Recently, the Department of Geology surveyed construction-sand prices to determine the profit margins made by dealers/truck drivers buying from the three main suppliers and delivering to sale points around Brusubi, Lamin, Bakoteh Tipper Garage, Tanji and Kartong. 

Contrary to the sentiments and allegations contained in the Foroyaa newspaper report calling for price control and blaming price increases on the Sino-Majilac-Company (SMJ) at the Denton Bridge site, the Department of Geology’s survey provided strong evidence of profit making by construction sand dealers and lorry drivers.

In fact, the price increases are due to continuous and seemingly insatiable quest for profit making by the truck drivers.

Essentially, the survey has revealed that:

1. The Gambia Government’s agreed cost of construction sand on site for the dredged sand at the Denton Bridge is D475 per cubic meter factoring payment of royalties to Government, cost of productions, etc. At the inland sand quarries in Marakissa and Giboro, the price is fixed at D220 per cubic meter.    
2. The average cost of wear and tear and fuel incurred by the dealers/truck drivers is estimated to range from D1,500 – 3,500.
3. The total cost incurred by the dealers for obtaining 10 m³ construction sand ranges from D6,250 - D8,250.
4. The dealers in turn sell the same volume of construction sand to consumers at an average price range of D9,000 – D12,000.                      
5. The profit margin of the dealers for each transaction ranges from:

• D2,750 – D3,750 when sand is purchased from Sino-Majilac-Company and on average a truck can have 4-6 trips a day.
• D4,300 – D4,800 profit per transaction when sand is purchased from Progressive Partners company at Marakissa Quarry, Kombo Central and
• D4,300 – D4,800 profit per transaction when sand is purchased from Fatajo Mining Company at Giboro Quarry, Kombo East.

1. In percentage terms, the profit margins by the dealers/truck drivers are as follows:

• 42 % - 56 % profit per transaction when sand is purchased from SMJ Company and on average a truck can have 4-6 trips a day.
• 83 % - 102 % profit per transaction when sand is purchased from Progressive Company.
• 67 % - 92 % profit per transaction when sand is purchased from the Fatajo Company.

Meanwhile, all stakeholders are reminded that the Petroleum Ministry’s policy on construction-sand is anchored on liberalization principles of free competition, open to all individuals and companies. The Government identifies additional construction sand sites across the country to ensure accessibility and affordability as well as the licensing of potential investors and operators.  

Therefore, as the Ministry continues its engagements to curb inflated construction sand prices by some sand vendors and truck drivers, Gambians are assured that measures are ongoing to solve this issue as soon as possible.

The Ministry of Petroleum and Energy is steadfast in fulfilling its obligations to the Gambian people in line with its mandate and strategic objectives.