Freetown, Sierra Leone — The Director General of the National Petroleum Regulatory Authority (NPRA), Dr. Brima Baluwa Koroma, has explained the factors that determine fuel prices in Sierra Leone, noting that pump prices are largely influenced by international market conditions and the cost of importing refined petroleum products.
Speaking at a press briefing in Freetown, Dr. Koroma stated that Sierra Leone does not produce crude oil or refined petroleum products, making the country fully dependent on imported fuel. Because of this, he said local pump prices are calculated using a structured pricing formula that reflects both global and domestic cost components.
He explained that many people expect fuel prices in Sierra Leone to fall immediately whenever international crude oil prices decline. However, he emphasized that crude oil accounts for only part of the total cost involved in supplying refined petroleum products.
“Crude oil represents about 55 percent of the overall cost of refined petroleum products,” Dr. Koroma said, adding that even when crude prices drop by 10 percent, pump prices may not decrease at the same rate due to other expenses within the pricing structure.
According to him, several additional factors contribute to the final price at the pump. These include freight charges, marine insurance, port handling fees, dealer margins, transportation costs, operational expenses incurred by Oil Marketing Companies (OMCs), and government levies.
Dr. Koroma noted that these costs together form what regulators refer to as the “landed cost,” which represents the total expense of petroleum products before they enter Sierra Leone’s domestic distribution system.
He further disclosed that most fuel imported into Sierra Leone comes from major international trading hubs such as Geneva and oil-producing countries in the Gulf region, including Kuwait and Saudi Arabia. The cost of transporting petroleum products from these locations also plays a significant role in determining the final retail price.
The NPRA Director General also highlighted the “full pass-through” pricing mechanism used in the country’s petroleum sector. Under this system, legitimate operational costs incurred by importers and fuel marketers are reflected in the pump price to ensure companies remain financially viable and able to maintain steady fuel supplies.
Dr. Koroma said the mechanism helps sustain the country’s fuel distribution network and prevents supply disruptions.
Reflecting on global oil market trends, he compared current market volatility with the period during the COVID-19 pandemic, when international oil prices dropped sharply due to reduced economic activity worldwide.
He explained that restrictions on travel, trade, and industrial operations during the pandemic significantly reduced global demand for petroleum products. However, when economies began reopening in 2021 and 2022, demand for energy surged, triggering a rapid increase in global oil prices.
“That increase was immediate and had global consequences,” he said, adding that Sierra Leone, like many other countries, had to adjust to the changing market realities in order to maintain adequate fuel supply.
Despite fluctuations in international markets, Dr. Koroma said Sierra Leone has managed to maintain relatively stable fuel supply and competitive pump prices within the West African region over the past two to three years.
He recalled that the country previously experienced frequent fuel shortages that often resulted in long queues at filling stations.
“Today we are maintaining stronger stock levels,” he said, noting that fuel reserves which previously ran dangerously low are now maintained between seven and ten days, with the capacity to extend to about fifteen days when necessary.
Dr. Koroma described the improvement as the result of coordinated efforts between the Ministry of Trade and Industry (Sierra Leone) and the NPRA.
He also disclosed that Sierra Leone currently consumes about 1.5 million litres of petroleum products daily, reflecting growing national energy demand. Monthly imports average approximately 40,000 metric tonnes of petrol and diesel combined.
Because the country relies entirely on imported petroleum products, he warned that global disruptions—especially those affecting major oil-producing regions such as the Middle East—can have direct implications for local fuel prices.
“Any disruption in global supply chains or geopolitical tensions in oil-producing regions will inevitably affect countries like Sierra Leone that depend completely on imported petroleum products,” he said.
Dr. Koroma also acknowledged the challenge of balancing government revenue with consumer protection in managing the petroleum sector.
While the Ministry of Finance (Sierra Leone) focuses on safeguarding government revenue from petroleum-related taxes and levies, he said the Ministry of Trade and Industry and the NPRA work to ensure stable supply and shield consumers from sudden price shocks.
Looking ahead, the NPRA Director General revealed that government is prioritizing investment in fuel storage infrastructure across the country.
According to him, expanding storage capacity will allow Sierra Leone to build larger strategic fuel reserves and better withstand supply disruptions caused by global crises or shipping delays.
“We cannot control international market forces,” Dr. Koroma said. “But what we can do is strengthen our internal systems, particularly storage infrastructure, to ensure the sector remains stable even during periods of global uncertainty.”
He concluded by reaffirming government’s commitment to transparency in fuel pricing and maintaining a steady nationwide supply of petroleum products while monitoring developments in the global energy market.
