By Amin Kef Sesay
When this medium caught up with the Executive Chairman of the Petroleum Regulatory Agency (PRA), Dr. Brima Baluwa Koroma, for him to throw light on the current petroleum situation and landscape in the country, he started by saying among other things, that the country consumes 1 million litres of fuel products every day but, on the contrary, the country can only store 40% of what is used per day.
The result-oriented Executive Chair further intimated that up to June 2021 Government granted over Le100 billion in subsidy on fuel products just to keep the pump prices stable adding that pump prices of petroleum products changed six (6) times since 2018 and out of those, it was reduced three (3) times during that period.
The indefatigable PRA Boss stated that it is good to note that in spite of the hike in global prices, the Government of Sierra Leone has, in the recent past, kept the pump price of petrol and diesel unchanged at Le8, 500 per litre which comparatively is far lower than per litre prices in the entire West African sub-region.
“In other words, the country’s fuel prices are the lowest in the sub-region,” he pointed out and gave a comparative analysis of sub-regional fuel prices converted in Le/Litre as at 31st May, 2021 taking into consideration: Sierra Leone, Guinea, Liberia, Ivory Coast, Ghana and The Gambia:
Petrol– Sierra Leone Le 8,500.00, Guinea: Le 9,450.00, Liberia: Le 7,879.33, Ivory Coast: Le 11,728.05, Ghana: Le 11,240.11, The Gambia Le 11,453.17.
For Diesel the comparison is as follows: Sierra Leone: Le 8,500.00, Guinea: Le 9,450.00, Liberia: Le 9, 192.49, Ivory Coast Le 11, 728.05, Ghana: Le 11, 172.45, The Gambia: Le10, 904.09.
In terms of Kerosene the comparison is as such: Sierra Leone: Le 8, 500.00, Guinea -, Liberia: Le13, 279.25, Ivory Coast Le10, 583.85, Ghana: Le9, 076.84, The Gambia: Le 8,573.04.
The Exchange Rate source is the Bank of Sierra Leone as at June, 3rd 2021. What this tells us is that at the moment we have the cheapest fuel pump price within the West African sub-region.
Dr. Koroma informed that Sierra Leone does not determine its oil or pump prices as the prices of petroleum products are determined by a combination of the international Oil reference price (PLATTS) and the foreign exchange rate.
“In other words, the pump price of petroleum products, including petrol, diesel, kerosene etc. in the country, is efficiently determined by a +/-5% trigger mechanism of the landed cost and that is mostly driven by the combined effect of the International Oil Reference Price (Platts) and available as well as accessible Foreign Exchange,” he took his time to explain.
He said, however, the country’s pricing regime is well structured, transparent and is reviewed monthly.
According to him, in as much as there has been a rise in the price of refined crude oil on the world market, the rate and manner in which the Government of Sierra Leone will continue to sustain leveraging subsidy on petroleum products could largely depend on how much Government will continue to mobilize additional revenue over a specific period of time.
“The apprehension now is whether the intervening stance of Government will be maintained amidst competing funding for the implementation of various development programmes,” he told this news medium maintaining that for now it could be a wait and see situation.
He underscored that what for now is certain is the plain truth that conditions on the world market are not favorable in terms of seeing a downward trend in the prices of petroleum products and it is something that is bound to affect developing nations like Sierra Leone negatively leaving most people, who are oblivious of the market realities on the ground, blaming Government whenever there is an increase in pump price though the latter does not import and market petroleum products.
Asked whether we are to expect an increase in the pump price shortly, the PRA Executive Chairman said by the look of things there is the likelihood but was quick to say that the petroleum landscape is highly volatile and changes can take place at any time.
He used the opportunity to appeal to all and sundry that if there is an increase in the pump price some people must not use it as a leeway to just increase prices of essential goods with the lame duck excuse of increased transportation costs.
“We must be patriotic and learn to love ourselves as a nation,” he ended admonishing.
This interview was granted before he was hosted by Radio Democracy 98.1 Gud Morning Salone Programme on the 22nd June 2021 but the Executive Chairman said nearly the same things as mentioned above with few exceptions. He pointed out that a storage facility will be commissioned by December this year which will add to the current capacity for imported petroleum products.
Dr. Koroma also revealed that fuel farms will be built in provincial areas in order to ensure that there is timely availability of fuel in those places thereby reducing the heavy dependence on Freetown for fuel supply and that they now have in their employ field monitors which has enhanced their monitoring exercises and heightened compliance by key players in the sector.
