By Mariama Bundu
The National Petroleum Regulatory Authority (NPRA) has attributed the recent rise in fuel prices in Sierra Leone to global geopolitical tensions and fluctuations in the international oil market.
Speaking during the government’s weekly press briefing on Tuesday, March 10, the Director General of the NPRA, Baluwa Koroma, addressed public concerns surrounding the increase in the pump price of fuel from NLe 28.50 to NLe 32.
Koroma explained that although the price adjustment has generated public debate, Sierra Leone still maintains one of the lowest fuel pump prices in the West African sub-region. He emphasized that the increase was influenced primarily by international developments affecting global oil supply routes.
According to him, rising tensions involving Iran, the United States, and Israel have disrupted the movement of oil tankers through the Strait of Hormuz, one of the world’s most critical oil shipping corridors. Any disruption in that region, he said, has immediate consequences for global oil prices and the cost of refined petroleum products.
Koroma noted that Sierra Leone is particularly vulnerable to these global fluctuations because the country does not produce crude oil or refine petroleum products locally. As a result, the nation relies entirely on imports to meet its fuel demands.
“We do not have crude oil production or a petroleum refinery in Sierra Leone,” he said. “Because of this, the cost of fuel sold locally is heavily influenced by international market prices and other external factors beyond our control.”
He further explained that more than half of the pump price paid by consumers reflects the cost of purchasing refined petroleum products from international markets and transporting them to Sierra Leone. These products are often sourced through global trading hubs such as Geneva, as well as oil-producing countries including Saudi Arabia and Kuwait.
Beyond the import cost, Koroma said other components also contribute to the final retail price. These include commercial levies imposed by the government, transportation and distribution costs, dealer margins, and operational expenses incurred by oil marketing companies operating in the country.
The NPRA Director General stated that Sierra Leone operates a full pass-through fuel pricing mechanism. Under this system, the cost of importing petroleum products is reflected in the final pump price, allowing oil marketing companies to recover their operational costs while ensuring that fuel supply remains stable.
Despite the recent increase, Koroma maintained that the country’s fuel price remains comparatively lower than in several neighbouring states. He revealed that the price difference has led to increased cases of cross-border smuggling of fuel from Sierra Leone into nearby countries such as Guinea and Mali.
“If fuel is being smuggled from Sierra Leone to neighbouring countries, it indicates that our pump price is still lower than what exists in those countries,” he said.
Koroma also highlighted improvements in the country’s petroleum supply capacity over the years. Previously, he said, national fuel reserves were only sufficient to last between seven and ten days. However, that capacity has now expanded significantly, with current reserves capable of lasting up to 50 days.
He disclosed that the country’s daily fuel consumption has also increased, rising from approximately 1.1 million litres per day to about 1.5 million litres. This level of consumption translates to roughly 40,000 metric tonnes of petrol and diesel used each month.
In addition, Koroma noted that the government has taken steps to strengthen the country’s energy security by expanding petroleum storage facilities. Storage capacity has grown from about 156,000 metric tonnes in previous years to approximately 260,000 metric tonnes today.
He added that some oil marketing companies have recently applied for permission to export petroleum products to neighbouring countries. However, he stressed that such exports would only be considered once the country’s domestic supply needs are fully secured.
Koroma concluded by assuring the public that the country’s fuel pricing system remains transparent and accountable. He pointed out that a review conducted by the World Bank, which assessed fuel pricing mechanisms in 111 countries, ranked Sierra Leone’s system among the most transparent globally.
He urged the public to remain informed about the international factors influencing fuel prices while reiterating the government’s commitment to maintaining a stable and reliable fuel supply for the country.
