In a significant development, Sierra Leone Government has announced a revision of its fuel pricing structure, marking the first major change in 30 years.
This new pricing regime, developed in collaboration with the World Bank and other key stakeholders, aims to bring greater transparency, economic stability, and social equity to the country’s fuel market.
“The changes will ensure that the final retail prices reflect the true cost of production and consumption of different fuel types,” said a spokesperson from the Petroleum Regulatory Agency (PRA).
“This is a critical step towards aligning our fuel prices with market realities.”
Key Changes in the New Pricing Regime
1. Price Variation Between Fuel Types: The new structure recognizes the varying demand-supply dynamics and production costs of different fuel types, adjusting retail prices accordingly.
2. West African Platts Benchmark: Moving away from the FOB Mediterranean, Sierra Leone will now use West African benchmarks, better reflecting the importation realities specific to the country.
3. Import Premium: This will now be determined by reviewing import invoices, with annual revisions. “We’ve included components of allowances for ocean losses to better capture the actual costs,” the PRA spokesperson added.
4. Reduction of Other Charges: The previously lumped ‘Other Charges’ component has been dissected and significantly reduced from USD13.6 to USD7.3 per metric ton, with some elements completely removed.
5. Introduction of Price Correction Levy: Replacing the stabilisation funds, this levy will address discrepancies between regulated prices and the actual cost of imported fuel.
Recent Trends and New Prices
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 remained relatively stable, appreciating by an average of 0.54%.
Effective from midnight on 30th June 2024, the new pump prices in Sierra Leonean New Leones (NLe) are as follows:
– Petrol: NLe 28.50
– Diesel: NLe 28.50
– Kerosene: NLe 27.40
– Fuel Oil: NLe 25.30
“The revised prices will remain in effect until further notice,” stated the PRA spokesperson. Detailed computations of the price build-up for the July 2024 review can be accessed on the PRA website at [www.pra.gov.sl](http://www.pra.gov.sl).
