By: Abdul Razack Gbla

The Petroleum Regulatory Agency (PRA) of Sierra Leone has announced significant changes to the country’s fuel pricing structure, marking the first major revision in 30 years. This overhaul, effective from midnight on June 30, 2024, aims to enhance transparency, economic stability, and social equity.

The revision, conducted in collaboration with the World Bank and relevant stakeholders, introduces several key components to the new pricing regime:

Price Variation Between Fuel Types: The new structure acknowledges the distinct demand-supply dynamics and varying production and consumption costs of different fuel types. Retail prices will now reflect these differences, providing appropriate market signals.

Shift to West African Platts: Moving away from the FOB Mediterranean benchmarks, Sierra Leone will now use West African benchmarks to better align with its importation realities.

Revised Import Premium: This component will be determined by annual reviews of import invoices, factoring in allowances for ocean losses.

Reduction in Other Charges: Charges have been reduced from USD 13.6 to USD 7.3 per metric ton, with some elements removed entirely.

Introduction of Price Correction Levy: Replacing the stabilization funds, this levy will address discrepancies between the regulated price and the actual cost of imported fuel.

Since the last review in March 2024, international oil prices have seen marginal declines: petrol by 2.20%, diesel by 6.14%, kerosene by 3.59%, and fuel oil by 1.83%. Additionally, the USD/SLL exchange rate has appreciated by an average of 0.54%.

The approved pump prices for July 2024 are as follows (in NLe):

Petrol: 28.50
Diesel: 28.50
Kerosene: 27.40
Fuel Oil: 25.30
These prices will remain in effect until further notice. Detailed computations for the July 2024 price review are available on the PRA website at www.pra.gov.sl.

Issued by the Petroleum Regulatory Agency on June 30, 2024