MONROVIA, Liberia – Liberia’s economy faces continuous challenges as basic things like petroleum importation, and non-functional refinery compound the country’s governance and growth.
Several weeks, a shortage of petroleum products and gasoline drove Liberians and residents of the country into a panic for days. The previous lack impacted the country’s weak economy.
Globe Afrique has learned that Liberia is once back into a similar situation with a severe shortage of gasoline and petroleum products.
Analysts, economists, and political observers say this terrible news for the country amid confirmation of global epidemic, Coronavirus (Covid-19), which is devastating the global market and economy.
Generally, a petroleum crisis can typically develop due to industrial actions like union organized strikes and government embargoes or issues relating to international tensions or confrontations. The cause may also be over-consumption, aging infrastructure, choke point disruption, or bottlenecks at oil refineries and port facilities that restrict fuel supply.
In the case of Liberia, sources indicated that the situation is different. The shortage “is due to poor management and incompetence leadership” at the autonomous agency that regulates petroleum products in the country.
Regional and local economists foresee economic crisis if this continues since gasoline and related petroleum products are an essential input in many manufacturing industries; therefore, shortages can of this nature and magnitude can disrupt production and reduce production levels. If such shortages are widespread, according to some economists, the problem can affect aggregate production levels.
Moreover, the energy crisis, such as the gasoline shortage in Liberia, has several impacts on any economy. These include things such as the increase in oil prices and financial downturns.