By Amin Kef Sesay
Contrary to false news making the rounds on social media that the petroleum sector has strongly refuted claim that the SLPP Led Government provided 21 billion Leones as subsidy in 2021 and 66 billion Leones so that fuel price will not increase to Le 9,034 in 2021 and to keep the pump price at Le7, 000 in 2020, a thorough investigation mounted by this medium has proven that indeed the Government did.
Indeed, it is an incontrovertible fact that there has been increase in fuel prices in the global market which is supposed to affect the pump price. However, from what this medium so far gathered the current SLPP Government swiftly stepped in by providing the aforementioned subsidies in order for the pump price not to shoot up astronomically which would have and still will obviously affect various facets of life.
According to the Executive Chairman of the Petroleum Regulatory Agency (PRA), Brima Baluwa Koroma, after the end of February, based on their monthly review, the pump price of petrol, for the month of March should have moved from Le 8,500 to Le 9,034.04 and similarly for diesel as well as kerosene throughout the country.
He, however, revealed that because of the proactive stance taken by Government to provide the necessary subsidy such did not materialize.
Brima Baluwa Koroma furthered that the Platts and foreign exchange are the two main determiners of fuel prices in the world maintaining that for now, as the petroleum regulator, they are closely monitoring the situation in order to know what will happen in the sector by the end of March 2021.
He maintained that despite the increment of fuel prices in the global market, the pump price of petroleum products for now in the country still stands at Le8, 500.
Research has also revealed that Goldman Sachs forecast Oil Price increase in 2021.Without any iota of doubt the increase will pose serious implications to West African Countries, Sierra Leone not being an exception.
All the West African Countries import refined petroleum products, with its telling effects on subsidies for these petroleum products by the various Governments with dire effects on national budgets especially at this crucial moment when COVID-19 is having debilitating consequences on national economies.
The Ivory Coast refinery, the only functional refinery at optimal capacity in the region, could not cater optimally for the West African market.
It is obvious that the price increase will inevitably lead to multiplier increase in the prices of consumer products and services as it has been established earlier.
