Passengers are seen boarding a bus at the Basel bus park in Serrekunda, Banjul, Gambia January 17, 2017 REUTERS/Afolabi Sotunde

Gambia hit by hike in fuel prices, may see fares increase

Gambia’s economy is continuing to face challenges and motorists are taking the brunt of it. The prices of petrol have spiked but chances are it won’t be as severe as the last one.

Global oil prices are starting to spike after a longstanding reduced price that saw economies of nations like Nigeria hard hit into recession.

The downturn in prices that affect oil producing nations was the result of the growth in oil supplies, largely from the U.S., outpacing the growth in global demand.

As of the new year, a barrel of oil stands at US$50.

Petrol at filling stations will be sold for D50 per liter, diesel at D47.77 per liter and kerosene at D44 per liter.

In fact, finance officials are trying to find a way to soften the increase, no doubt wary of renewing cost of commercial fares. The transportation union has not made any statements in this regard.

The fuel price increases are being implemented by the country’s finance ministry to bring the price at the pump up to a more realistic level, one that takes into account the full, true cost of getting it there.

The Central Bank of The Gambia is yet to mention how this will affect inflation, which has been high in the last 3 years.

With the worldwide economic recovery underway, demand is on the rise again but unrest in the Middle East and North Africa has put supplies at risk.

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