The Petroleum Regulatory Agency (PRA) of Sierra Leone has unveiled a new pricing regime for petroleum products, following an extensive review of the 30-year-old fuel pricing structure in collaboration with the World Bank and other relevant stakeholders.
This
revised pricing regime introduces several key changes aimed at more accurately
reflecting market dynamics and the cost of production and consumption across
various fuel types. The adjustments ensure that final retail prices align with market signals for different fuel commodities.
The
new regime acknowledges the unique demand-supply dynamics and cost variations
in production and consumption for different fuel types. Consequently, the final
retail prices will now vary according to these factors.
The
pricing benchmark has been shifted from the FOB Mediterranean to West African
benchmarks. This change aims to align Sierra Leone’s fuel prices more closely
with the regional importation realities.
The
import premium will now be based on a review of import invoices to determine
the cost of importation, subject to annual revisions. Notably, allowances for
ocean losses have been included in the pricing structure.
The
component for other charges has been significantly reduced from USD 13.6 to USD
7.3 per metric ton, with some charges being entirely eliminated.
Replacing
the stabilization funds, a new 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 for petrol, diesel,
kerosene, and fuel oil have declined marginally by 2.20%, 6.14%, 3.59%, and
1.83%, respectively. The exchange rate of USD to SLL has also remained
relatively stable, with an average appreciation of 0.54%.
Effective
midnight on June 30, 2024, the approved pump prices for July 2024 are set as
follows:
Petrol: NLe 28.50 Diesel:
NLe 28.50 Kerosene:
NLe 27.40 Fuel Oil:
NLe 25.30
These
prices will remain in effect until further revision by the PRA.
The Petroleum Regulatory Agency of Sierra Leone has introduced a new pricing regime for petroleum products, reflecting a thorough review of the outdated pricing structure. This new regime, developed with input from the World Bank and other stakeholders, aims to better align retail prices with market dynamics and the costs of production and consumption.
By shifting the pricing benchmark to West African standards and including allowances for ocean losses, the PRA ensures a more accurate reflection of the region's importation realities. The new regime also reduces other charges and introduces a levy to address price discrepancies.
With marginal declines in international oil prices and a stable
exchange rate, the new pump prices for July 2024 have been set, effective from
midnight on June 30, 2024. These prices will be maintained until further
adjustments are made by the PRA.
