By Amin Kef Sesay
Without any gainsay the Petroleum Regulatory Agency (PRA) today has a new face within the petroleum landscape of the country. The almost dysfunctional PRA that many used to know few years back is now a very vibrant public institution that has not only brought sanity within the petroleum sector in this country but is generating huge revenue for Government.
The transformation that we are witnessing did not just materialize out of the blues but was made possible by the sheer competence of the person who is at the helm of affairs, Dr. Brima Baluwa Koroma, as the Executive Chairman of the Petroleum Regulatory Agency.
In an exclusive interview with the PRA Chairman, Dr. Brima Baluwa Koroma, he intimated that PRA was established to license and regulate the efficient importation, storage, transportation and distribution of petroleum products so as to ensure their regular availability to consumers across the country, adding that when he took over as the Executive Chairman he met 200 Filling Stations in the country but proudly said that for now there are now 340 Filling Stations nationwide.
The PRA Boss furthered that as a regulatory agency they are not really satisfied that most of these Filling Stations are located within the Western Area with limited ones in the provinces stating that his institution is encouraging investors to open up Gas Stations in other deprived areas in Sierra Leone.
He cited the National Petroleum –Sierra Leone Ltd as a petroleum business entity that is contributing over 500 Billion Leones in the payment of taxes to Government on a yearly basis adding that last year PRA raised 753 Billion Leones of which the National Petroleum –Sierra Leone Ltd contributed 60 percent of the said amount raised by PRA.
Dr. Koroma reassured the Oil Marketing Companies of Government’s commitment to create the enabling environment for the private sector to thrive.
He stated that he came in at a time when the petroleum sector was in desperate need of reforms as unresolved challenges continued to impact the sector with weak investor appetite adding that the sector was having limited players, frequent supply disruption and declined Government revenue.
The result-oriented PRA Executive Chairman revealed that his first move after his appointment was focused on rolling out three initiatives which he considered to be critical. He mentioned how he and his team were able to develop policies to expand the market space, brought back fairness to stimulate efficiency as well as transparency.
Dr. Koroma further explained that he, his colleagues and other stakeholders then went on to embark on the development of the petroleum industry infrastructure with a view to attract new players, look at the possibility of resuscitating the oil refinery, constructing tank farms across the regions, bulk transportation and retailing stating that such will enhance petroleum product security and affordability and lastly, by enforcing compliance through their District Monitoring Officers to their petroleum laws and tax commitments.
He disclosed that petroleum revenue increased from Le473billion in 2018 to Le753billion in 2020 maintaining that such a remarkable achievement crystallized as a result of robust monitoring and efficient revenue management reforms further stating how the sector now contributes 15% to the country’s domestic revenue drive.
He said close monitoring of available stocks of oil marketing companies has been heightened which puts the PRA at a vantage position to appropriately advise them to have an adequate supply.
The PRA Boss said such has made petroleum importation grew by 27.9% from 340,060 metric tons in 2018 to 459,960 metric tons in 2020 and annual sales and distribution recorded 416 million litres in 2020 with an improved run-rate expected in 2021.
Dr. Koroma disclosed that Platts, which is another determiner for the price of fuel, used to be another challenge for the Agency and they used to rely on data from oil marketing companies to know whether there would be any increase or decrease in the world market. “That kind of situation made the Agency to be in a disadvantaged position to know movement in the world market,” he said adding that now the PRA has its own Platts with twenty-four hours updates which have made them follow every trend in the world market.
He concluded by stating that he would want to see the Petroleum Regulatory Agency as a viable industry in order for every sector within the value chain get the most of their regulatory framework as there is a clear trend towards an improved service delivery sector, maximized economic benefits and improved revenue for the Government.
