By Mabinty M. Kamara
As prices of fuel pump price continue to increase in Sierra Leone, government officials and authorities in the Petroleum Regulatory Agency (PRA) have highlighted the rationale behind the hike in prices, noting that government has no control over fuel price as the business is 100% controlled by the private sector.
Speaking at a press briefing at the Ministry of Information and Communication on Tuesday 10th August 2021, to announce the new pump prices of fuel, the Executive Chairperson of the PRA, Baluwa Koroma their role as an agency is to regulate activities in the petroleum industry in Sierra Leone which includes petroleum importation into the country, storage, refinery, distribution, retailing and transportation amongst others.
“The other emphasis I may like to make is, no government has control over fuel prices. Even in OPEC countries. And mind you the OPEC countries are still in disagreement as to where the Platt price should lead. For Sierra Leone, the critical drivers are the Platt and the foreign exchange rate. But the Leone has been stable against the US dollar, our major driver now is the Platt rate,” he said.
He added “Along this value chain, you may wish to know that there is no government participation and this is peculiar only to Sierra Leone. At the moment, the entire sector is in the hands of the private sector. That tells you the challenges that this government is confronted with.”
He went on to note that the country currently has one large storage facility, one jetty, and two importers of petroleum products into the country to serve the country’s population and that the country consumes 1.2 million liters of fuel of which the storage facility in Sierra Leone can only accommodate about 40%.
The pump price of petroleum products has increased by Le 500, to Le 10,000 a litre, effective yesterday 10 August 2021, according to officials of the industry.
The authorities however assured that the new price will not lead to any panic buying that may generate possible hoarding of petrol or diesel.
Koroma added that the country’s pump price remains below the average price of Le11, 000.
Speaking at the Press conference, the Permanent Secretary for the Ministry of Transport and Aviation, Brima Sowa said the rise in the pump price will have a minimal increase on the transport fare across the country, noting that they have already engaged the relevant stakeholders in the transport sector to ensure that the people are not exploited.
He added that the government was working on modalities to provide public bus services to cushion the transportation effect on the public.
However, a joint press statement from the Native Consortium & Research Center & the Passengers Welfare Organization has condemned the recent hike in the pump prices, noting that it is unjustifiable and insensitive to the plight of the people.
“Though the increment is marginal but the pass through effect has a devastating toll on the poor and it is unjustifiable. As at August 2018 pump price of fuel was increased to Le 8,000 per liter and was sold at an average price of $ 72.67 per barrel, while in August 2021 pump price is now sold for Le 10,000 and it’s been sold at an average price of $ 72.26 per barrel,” the statement reads.
It added that the country has never been faced with a situation where fuel price will change 6 times in 12 months.
“For once in our country a liter of fuel is sold for Le 10,000 when the world market price of crude oil per barrel was sold at a staggering price of $ 69.09 per barrel in August 2021, whiles at July 2018 when Edmond Abu was arrested the PRA increased the pump price of fuel from Le 6,000 to Le 8,000 and the price of crude oil was sold at $ 72.67 per barrel when the exchange rate remains constant,” it reads.
Copyright © 2021 Politico Online
