By: Thaimu Bai Sesay
The Executive Chairman of Petroleum Regulatory Agency Baluwa Koroma has on Tuesday 5th December 2023 at the Government press briefing revealed that the Petroleum Regulatory Agency would be generating an unprecedented amount of one trillion Leones as revenue to the Government of Sierra Leone for the 2023 year.
In 2018, the industry generated about 476 billion revenues to the Government of Sierra Leone. Last year alone we generated close to 800 billion revenues to the Government meaning we are contributing about 12 percent to the domestic revenue, and by December this year 2023, we are going to hit 1 trillion Leones as revenue,” he assured.
The Executive Chairman of Petroleum Regulatory Agency revealed that at moment of reporting they only have four to five importers in the whole country. In the entire dam stream, he said they had close to 200,000 metric tons’ storage capacity, adding that all of that belong to the Government of Sierra Leone but outside the control of the Government, adding that they were 100 percent in the hands of the private sector.
He said at the moment the Government of Sierra Leone is not importing and described that as unreasonable saying it is only in Sierra Leone the petroleum sector is 100 percent in the hands of the private sector. “You cannot see that anywhere around the world not even our neighboring country Guinea but that would have to change,” he assured.
Baluwa revealed that Sierra Leone is consuming 1.4 million liters per day without producing nor refining any petrol. He recalled that last year 1.2 million liters per day, this year 1.4 liters and projected that in five years they would be expecting to consume 3.0 million liters per day, adding that such statistics called for a restructure of the industry.
Giving the statistics of metric tons of petrol and diesel consumed on monthly and yearly basis, he said it was not commensurate to the quantum of petrol and diesel that is being imported by the players in the field, saying only few that import bulk of 10,000, metric tons. “Some import 5,000, others 4,000 while most around 2,000 metric tons,” he said.
He further digressed on the reasons for the frequent shortage of fuel in the stations in which he made mention of frequent replenishment and the non-frequent importation of fuel. He however assured that there was enough petrol in the country as he revealed that a vessel with 10,000 metric tons of petrol was at the anchorage, waiting for the appropriate time to be discharged.
The PRA Chairman revealed that they were only occupying the British Council at Tower Hill but said they now have offices, personnel and regional managers at the North East specifically in Makeni, the South specifically in Bo and Kenema and assured that by February the Industry would establish another branch at Port Loko. “when we came in 2018 we have about 12 staff but today we proudly have 90 young men and women at the sector throughout the country,” he added.
Baluwa revealed that he is currently at the time of reporting working with World Bank in order to review the current pricing structure and affirmed that World Bank has approved that with recommendations on how they could go about improving the pump price. He assured that at the end of that review the pump price would be lower than it is thou the current price is still at the middle of the pack.
The PRA Chairman explained on the statistics of the metric tons of fuel which the different fuel companies had put in for and assured that there would be no fuel crisis from now onto February next year. He revealed that they were working on a provision of 12 weeks import cover which would be very helpful particularly in times of crisis. He also disclosed that last year in December cabinet had approved for the establishment of serial petroleum companies which would be impactful.
In his rounding off statement he revealed the challenges government faces in trying to regulate and moderate fuel pump prices in which he said in June alone because Government suppressed pump prices, it ended up paying a refund of 4.8 million dollars. As part of addressing such an issue he said the Government is to establish a strategic storage facility and said at that moment they had about 10,000 metric tons’ storage facility. He continued that such venture would address vulnerability and ended up calling interested investors to invest on more storage facilities.