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Sunday, November 24, 2024

Fuel Scarcity and its Multiple Effects on General Productivity Levels

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By Yusif Moiguah
The present diplomatic and economic tensions brewing between governments of the Federal Republic of the United States of America and the Arab world predominantly the Islamic Republic of Iran, Syria, Libya amongst other oil producing countries has caused sweeping increases in the prices of all fuel products almost everywhere in the world.
This situation is currently touching the least country in the world, considering the sensitive nature of fuel products, which has caused the rampant sales of distillates wastes from diesel fuel used from cargo ships in Sierra Leone.Such diesel fuel wastes have their negative effects on the life spans of vehicles and machineries consuming them to meet their various operational demands.
This is why most people who are familiar with authentic fuel products are not using distillates diesel fuel in their cars and other diesel consuming machineries.
This also has major adverse effects on the efficient productivity levels of smaller countries especially vulnerable Sierra Leone with no means of producing its little oil deposits.
The oil potentials of Sierra Leone are yet to be explored and this is consequent on having the right business minded leadership with the profound political will towards enhancing sustainable national development efforts and stimulate growth from all fronts.
The products which most nations exceedingly depend on for their general productivity has in recent weeks become very much costly in Africa with no exemption of Sierra Leone.
Government officials in Sierra Leone are claiming that the country has the lowest pump prices in the sub-region.
With these assertion authorities in the country have failed to attend to the emerging challenges surrounding the shortage of petrol and other fuel products in the country’s oil market.
As a result of the continuing scarcity, prices of building materials such as cement has unimaginably increased costing between Le75, per 000, 00 to Le 80, 000, 00 for 50 kilograms within the shortest period of scarcity. This is also the case with prices of essential commodities including our staple food rice.
An eventual addition into the prices of fuel products has always had an impact on the cost of other related commodities in the markets.
Despite the hike in prices of other basic commodities created by the increase the cost of production in various industries and other private entities across the country is also hugely affected.
This is against the backdrop that most of the plants and machineries used by these sectors in their various production processes consume either diesel or petrol in their machines.
This factor is also hugely responsible for the high demand of the product correspondingly warranting frequent increases in prices.
The Minister of Trade, the Petroleum Directorate and the Petroleum Regulatory Agency have either failed or slow to introduce sound policy guidelines to address the issues around monopoly or the lack of many players in the sector to facilitate transportation, storage and easy distribution of the product and many other attendants affecting the sector.
Government has maintained on a number of occasions that their absence in the importation, transportation and distribution value chain is something they are worried about.
The brunt suffered as a result of fuel scarcities or increase in prices is affecting people across all sectors. Many public servants and others in the informal sectors of the economy are constrained in reporting for work whenever such issues occur.
Private sector players and their businesses also share similar pinch of the ongoing sufferings faced by diesel fuel shortage across the country.
By way of solving the problem government through the Trade and Industry Ministry and the Petroleum Regulatory Agency recently held discussions with other key stakeholders including oil marketers in the industry.
Such meetings according to reports have ended up in deadlocks. But eventually over the weekend all parties including government and Oil Marketers have all agreed that movements in the international market is very much necessary to warrant a review of the prices in the country to reflect current realities.
This recent development is expected to address and out to an end the issues of long queues in fuel stations and the untold sufferings on our people.

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