February 11, 2021
By: Mohamed Kargbo
“In Sierra Leone, we consume petroleum products about 1.1 million liters per day, with over 7 million people in Sierra Leone, we only have two Petroleum importers, two large storage companies, and only one petroleum jetty,” Chairman of the Petroleum Regulatory Agency Dr. Brina Mohamed Baluwa Koroma has said in a press conference to react to the rising cost of petroleum products in the country.
He told journalists that his agency contributes about 15% of domestic revenue generation, adding that although the new increase is worldwide, Sierra Leone is still below the regional average of prices of petroleum products. Dr. Brima said since 2018, they have been sustainably growing the revenue.
The Executive Chairman disclosed that in 2020, even with the COVID-19 challenges, they were able to raise 753 billion Leones which was far better than in 2019. He acknowledged that these are the monies the government needs to support the health care system, education, and other sectors.
He disclosed that they were supposed to sell petroleum products at 10,000 Leones per liter, but the Government of President Bio Julius Maada Bio subsidized about Le66 billion to cushion that effect, though there has been a change in price regime for about 6 times, three of those times the price has been changed downwards.
He provided growth measuring figures over the yeas saying: “We deal with about 473 billion that jumped 56% in 2019 to 743 billion Leones 2020.”
He added that the Petroleum Regulatory Agency is engaged in issuing licenses and regulates the activities downstream that covers petroleum importation, storage distribution, retailing etc.
Dr. Koroma said that, the country has about 200,000 metric tons of fuel which is also less functional, and that about 40% of that capacity is serving 7 million people. He revealed that the national target is 500,000 metric tons that would have regional tanks in Port Loko to serve the North West, the East, and the South.
He said the pump prices regime in Sierra Leone is being determined by the combined effect of PLAT which is the international reference price and the foreign exchange. He further said that, when the prices move by 5% we increase, when it moves down minus 5% we reduce.
He disclosed that Government has tried to resuscitate the Kissy Old refinery to ensure it produces 60,000 metric tons capacity from which Government will own 10,000 metric tons of that capacity to stabilize any external shock. “Our average petroleum sales per month across the entire industry is 16,000,000 liters, in January alone, we have sold Le40, 000,000 liters. Where is it going?” He asked.
He assures the general public that, if the prices of petroleum products go down in February, they will not hesitate to reduce the prices as well.
