PRA Cuts Fuel Prices with New Pricing Regime
The Petroleum Regulatory Agency (PRA) of Sierra Leone has announced a new pricing regime for petroleum products. This move follows an extensive review of the 30-year-old fuel pricing structure, conducted in collaboration with the World Bank and other relevant stakeholders. The revised pricing regime introduces key changes to better reflect market dynamics and the cost of production and consumption across different fuel types. These adjustments are designed to ensure that final retail prices more accurately represent the market signals for various fuel commodities.
The new regime recognizes the distinct demand-supply dynamics and cost variations in production and consumption for different fuel types. As a result, final retail prices will now vary according to these differences. The pricing benchmark has been shifted from the FOB Mediterranean to West African benchmarks, aligning Sierra Leone’s fuel prices more closely with the region’s importation realities.
The import premium will 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. Additionally, the exchange rate of USD to SLL has 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.
