Liberia’s President, Joseph Boakai made a strategic and considerate move to halt the country’s plan to place a surcharge on petroleum pricing structure.
This decision was made to help citizens reduce the cost of living, alleviate the financial burden on Liberian citizens and stimulate economic growth.
The President of Liberia issued Executive Order No. 128, immediately suspending a $0.20 surcharge on the country’s petroleum pricing structure.
Under the Liberian Constitution, the President is empowered to issue Executive Orders in the public interest, particularly in addressing urgent matters crucial to the country’s development, economic stability, and the overall enhancement of citizens’ livelihoods.
Boakai‘s decision is motivated by the expectation that reducing petroleum costs will trigger a series of beneficial impacts on the economy.
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What Is The Impact Of Suspending Surcharge On Petroleum In Liberia?
This initiative is projected to lead to decreased prices of goods and services, enhanced productivity and profitability for businesses, and ultimately contribute to a rise in government revenue.
In issuing the Executive Order, the President is confident that reducing petroleum costs will greatly benefit the people of Liberia by decreasing the prices of essential goods and services, stimulating productivity and profitability in business operations, and bolstering government revenue.
This strategic fiscal manoeuvre aimed at reducing petroleum costs is expected to have a multifaceted impact on businesses, ranging from an anticipated increase in productivity and profitability to potentially resulting in higher tax revenues for the state.
As businesses experience a reduction in operational costs due to lower petroleum expenses, they are likely to allocate more resources towards growth and innovation, thereby enhancing their overall performance and bottom line.
The ripple effects of enhanced business productivity and profitability are not limited to the private sector alone. They extend to the government’s coffers through increased tax revenues generated from thriving businesses.
The additional tax revenue can then be channelled towards funding essential public services, infrastructure development, and social welfare programs, contributing to the overall well-being of the populace.
Moreover, this strategic fiscal measure is not an isolated action but is part of a broader effort by the Liberian government to fortify the country’s economic foundation and foster sustainable growth.
By addressing key cost drivers such as petroleum expenses, the government aims to create a conducive business environment that encourages investment, stimulates economic activity, and ultimately propels Liberia towards long-term prosperity and development.
The high cost of petroleum has influenced the price of basic commodities, which has been a major concern for citizens, who have been struggling to afford necessities due to the rising prices since the inception of the current government administration.
However, the citizens of Liberia are sceptical about the implementation of the President’s pronouncement due to previous failed promises of the suspension of petroleum surcharge by Commerce Minister, Amin Modad.
Citizens working in the transportation business have described the President’s action as impractical and criticized the government for not taking more decisive and practical action to address the root causes of the high cost of fuel.
Speaking to one of the transport workers, Moses Dorbor said,
“We appreciate the President’s efforts to reduce gasoline prices, but this move is not enough. The government needs to take more concrete steps to address the underlying issues that are driving up the cost of fuel.”
He also proposed that the President needs to prevail over the Commerce Minister to implement the pronouncement to surcharge petroleum.
This policy initiative will not only hold significance at the national level but also serve as an example to other African leaders on how to improve citizens’ cost of living as well as showcasing how governments can navigate fiscal challenges while prioritizing the well-being and economic stability of their populace.
