“The Oil Marketing Companies (OMC) or the international trader do not pay the levies, tax, duties and VAT on the fuel that is sold,” he testified yesterday at Parliament during the inquiry session.
“It is the consumer at the pump station who buys the fuel that pays the tax on the litre of the fuel and the levies, as per the price structure determined by the government every month,” he explained, saying the OMCs merely “collects the money and remits it” to GRA.
The transaction that takes place at the border is entirely between the OMC and the trader, he elaborated: “It's a business relationship. Before the fuel comes in the depot, they pay for it offshore into the trader's account they're dealing with.
“But these traders, which is Trafigura, ADAX, PSTV, Apogee and recently Dimex - a new trader at the other depot, bring product and store it there and make it accessible for our OMCs who are licensed to pick it from there and sell it within the territory.”
This and other reasons prompted the ministry to establish a policy to provide solutions to the issues, alluded Mr Jobe, now Minister of Tourism.
The policy stated that “International traders, OMCs and depositors of petroleum products at the storage depots facilitate the availability of the products to licenced operators in the country to have access to products.
“In this regard, the product owner with stocks at the depot can choose to instruct a buyer to pay an invoice into a foreign bank account as per the agreed commercial terms, effecting the payments in Gambian Dalasis (GM); however, it remains the preferred option.”
The co-chair of the Committee, Nominated Member Kebba Lang Fofana, put it to the minister that from his submission, “it indicates that initially there was a petroleum stock out in the Gambia in 2021, and then there was an investigation into it.
The minister responded in the affirmative and provided the report of the investigation to the committee yesterday.
The committee co-chair further said: “This move was repeated in February 2023. And then a meeting was conveyed by the late vice president, and that there was a policy consultation. And an initial version of it was published in July 2023, and then further clarifications were done in September 2023, and a finalized version was done on the 30th of October 2023.”
The minister concurred with the co-chair with these claims.
The Minister was also asked to provide the exact date when the policy was discussed in Cabinet.
He first said he could not give the date the issue was discussed in Cabinet, claiming that issues discussed in cabinet “are confidential and not meant for public consumption”.
Co-chair Kebba Lang Fofana put it to the minister that “at the end of every Cabinet meeting, there is always a communication from the State House Press Secretary” that would indicate the general issues that were presented by various ministries.
Hon. Lang Fofana further stated: “The specifics are confidential, but the generalities are never hidden from the public. And what the Committee is asking for is within your limits, because you were the substantive portfolio holder of the Ministry of Petroleum and Energy as at the time this policy was presented to Cabinet.”
After a heated argument, the minister finally agreed to provide the date within the period of on or before 31st October 2024.
