Monrovia- March 8, 2022: The former governing Unity Party says, it is taken aback by the astronomical increment in the prices of petroleum products as announced by the Government of Liberia on Monday, March7, 2022.

The UP says, While it recognizes the current crisis between Ukraine and Russia and how it impacts global trade and in this case the prices of petroleum products, it strongly believe that the CDC government has the capacity to circumvent the shock on the Liberian economy rather than using this as an opportunity to exploit the ordinary people.

“Liberian consumers have been faced with soaring food prices and transportation fares since the inception of the CDC government. To compound this, salaries were dramatically reduced for many while a few saw minimum increase through an unpopular harmonization scheme. Available data show that about 65% of our population live below the poverty line while approximately 1.4 million Liberians are living in abject poverty with an estimated 500,000 -600,000 at higher risk of falling below the poverty line.

All of these are happening at a time when the government has failed to create jobs, provide any form of opportunities for the majority youthful population or attract foreign direct investment in order to better the lives of the ordinary Liberians.

To compound this, the government has issued a circular indicating a hike in the prices of petroleum products. Sadly, this hike will only achieve one thing- worsen the living conditions of our people as it will lead to a rise in food prices, transportation fares and costs of critical goods and services. We believe that this burden is too enormous for the ordinary Liberian to bear as it will lead to additional hardship for our already struggling families. This unjustifiable astronomical increment in the cost of petroleum products will also negatively impact the cost of production (manufacturing), as well as almost everything, as businesses heavily depend on gasoline and fuel for generators in the absence of electricity from the Liberia Electricity Corporation (LEC). This will impact the already drowning hospitality sector, healthcare system, transportation sector and food production sector,” it mentioned.

Meanwhile, the UP says its attention is specifically drawn to the health sector and how this is going to negatively impact said. All referral hospitals in Liberia are currently complaining about the lack of drugs and other materials (including gloves) to treat patients in the presence of the global COVID pandemic. The government has failed to, unlike other countries, appropriately provide minimum stimulus programs, incentives, and technical support to critical sectors most impacted by COVID. Now, this government is coupling these challenges with the astronomical increment in the prices of petroleum products.

The Unity Party stated that it considers the recent increment announced unacceptable because even right in neighboring Sierra Leone, based on the current crisis between Ukraine and Russia, they have only increased their petroleum products by 2000 Leones which is U$0.017.

The crisis between Russia and Ukraine is already exacerbating the impact of COVID-19 globally; the GOL MUST be proactive in not only developing a belated post-COVID recovery strategy but also to circumvent the expected shock of the Russia-Ukraine war. One of the many ways to do so is to provide subsidies or lower tariffs on essential politically sensitive commodities such as petroleum products, rice and cement.

For example, the government currently levies: U$0.30 per gallon for Road Fund, U$0.20 per gallon for GST, U$0.25 per gallon for Import Duty, U$0.30 per gallon for LPRC storage, U$0.15 per gallon for Excise and 1.5% of the Cost, Insurance and Freight (CIF) value as Custom User fees, excluding Port charges. During this period of crisis, one would hope that the government would make a temporary reduction in these charges so as to reduce the transfer of burden on its citizens. Additionally, this is the time when prudent AUSTERITY measures and fiscal discipline should be championed by the president; perhaps this is where reallocation of funds from the “Special Presidential Projects” should go to subsidizing the global increment in petroleum products.

This government clearly continues to demonstrate inexperience, unpreparedness and total detachment from the realities in the country and the suffering of the people. This crisis, if not managed well, has the propensity of flat-lining the economy and eroding all progress made during the 12 years of the UP-led government.

We believe, in such difficult times, the government must prioritize the wellbeing of our people by absorbing these global shocks rather than passing the burden down to already struggling families. This is inhumane, insensitive and a callous disregard to the appalling situation of many Liberians.

The Unity Party thus calls on the CDC government to reconsider the current imposed increment in petroleum products to avoid tripling the current sufferings on the Liberian people.