I have been following the debate on the above subject matter but was unable
to comment on the issue. I read various newspaper articles on the topic but
none of them seem to talk about an issue I feel is very crucial to this
debate. I think it is important that we know the different components that
make up the price of gas at the pump. Months ago, I had commented on the
exorbitant tax our governments impose on fuel products and how the
government then turns around and use the money on silly projects and trips
around the globe.

When I read newspaper reports and saw that everyone except the government
was complaining about the price hike, the first thing that crossed my mind
was TAXES. Oil companies in the country were complaining. Taxi drivers were
complaining. Their passengers were complaining. Other consumers of gas (for
their cars, generators etc.) were also complaining. Other Gambians will
complain when the prices of rice, cooking oil, candles, etc. go up.

But what puzzled me was why no one was asking the government to tell us the
real reason for the price hike. Government's official reason was that the
price increase was made necessary because of the rise of oil prices in the
international market place. That is NOT the real reason. Government does not
buy the oil from the international market place. The oil companies do that.
In any case, even if the government was buying the oil and then selling it
to oil companies for resale, when the oil prices in the international
markets go up, the bottom line of the oil companies should absorb the damage
and not the poor Gambian consumers. In other words, if the price of crude
oil goes up, the profit margins of oil companies should be reduced, rather
than passing the pain to the Gambian poor and the horrendous Gambian
economy. Alternatively, when the price of crude oil goes up, the
government's tax base should suffer before the Gambian consumer suffers.

We all know that the tax on fuel is what sustains most of these governments.
In some countries (and I think Gambia is included here) more than 80% of the
price of gas at the pump, is paid as tax to the government. What does High
School Economics teach us about taxes (price increases) and the elasticity
of demand? The mental midgets running our vision-less governments know that
people will always need to buy fuel. If the government increases the tax
(price) on fuel, the worst that can happen, is a riot for a day or so in the
urban area and people will resume their normal affairs. But our criminal
government will not even allow taxi drivers to demonstrate. People
expressing their disgust with this price increase were not even allowed to
demonstrate peacefully. Governments like the criminal one we have, will try
and misinform the people about the price rise. They will pretend that it is
the oil companies that are increasing the price of fuel. The government does
this in the hope that the population would then visit their frustration on
the oil companies.

This ploy backfired for our government this time. One of the first people
the newspapers interviewed, were attendants at gas stations. These people
expressed their dissatisfaction with the price hikes and lamented that the
increase in prices was driving away their customers. But the issue should
have been followed up. We should have asked about whose bottom line this
price increase was going to benefit, since the oil companies did not like
it, the tax drivers did not like it and the ordinary consumers surely did
not like it.

It is very irresponsible of our finance ministry to oversee this price rise.
If fuel prices go up, it directly or indirectly affect the entire
population, not just the few people in the urban area with cars and
generators. When taxi drivers increase their fares, it affects farmers
traveling from Basse to Banjul. When lorry owners increase the price of
transporting goods, it affects consumers of rice, cooking oil, candles, etc.
So all Gambians should be concerned about this price hike.

Government (Famara Jatta) should be asked to explain the real reason behind
this price hike. We should be critical and ask: who is really benefiting
from this government policy? Is this all the fiscal policies Jatta can come
up with? Should we allow this indirect form of taxation be used to finance
the corrupt activities of this government? Should the price of rice be
increased for the poor farmers so that Famara Jatta can earn per diem and
send his children for vacations in the U.S.? Should the price of candle be
increased so that Yaya can fuel his jet to travel to Morocco and send his
wife to the U.S. for doctor visits? Does it make sense for the government to
reduce the taxes it imposes on operators in the tourist industry, just to
increase the tax it imposes on the most vulnerable Gambians (farmers that
need rice to feed their families)? In short, does this government has the
wherewithal and the moral backbone to impose such heavy tax burdens on
Gambians?

I respectfully urge journalists in the country and political operatives in
the Opposition to talk to people in the oil industry and ask them about the
different components of the price of oil at the pump. People would then
realize that an insignificant amount goes towards the purchase of the
product from the international markets. Another meager percentage goes
towards the profits that the gas station operators make. It gets murky when
you try to discern what Shell or Elf makes out of the deal. It gets even
murkier when you want to know what the oil companies pay the government as
'tax'. This business is a cash cow for our governments. The unfortunate
thing is that with a government like ours, the little man gets punished
while inept government officials (that do not have the vision to run an
economy) waste taxpayers' money.
KB

_________________________________________________________________
Get your FREE download of MSN Explorer at http://explorer.msn.com

----------------------------------------------------------------------------

To unsubscribe/subscribe or view archives of postings, go to the Gambia-L
Web interface at: http://maelstrom.stjohns.edu/archives/gambia-l.html
You may also send subscription requests to [log in to unmask]
if you have problems accessing the web interface and remember to write your full name and e-mail address.
----------------------------------------------------------------------------