The government of Sierra Leone has announced an upward review of fuel prices effective March 1, 2022.

The Petroleum Regulatory Agency (PRA) in a statement on Monday said the pump price of fuel including petrol, diesel, kerosene and fuel oil has been increased from ten thousand Leones (Le10,000) to twelve thousand Leones (Le12,000).

According to the PRA,  the increase is as a result of key factors affecting fuel prices adjustments which includes:

Platts: The International Oil Reference prices has increased by 62% and 67% for petrol and diesel respectively within the same period of 2021.

International Market: World Demand for Oil remain in excess of supply since January 2022. Oil participating countries could not meet their production target since December 2021 making the market even tighter thereby pushing oil prices higher.

Geopolitics: The escalating crisis in Europe has led to a surge in oil prices with fears and uncertainties.

Research conducted has shown that Sierra Leone does not determine oil prices, but the prices of petroleum products are determined by a combination of external factors, which includes the international Oil reference price (PLATTS) and foreign exchange rate.

In Sierra Leone, the pricing formula is well structured, transparent and reviewed monthly, and pump prices have changed six (6) times since 2018, with a reduction in the pump price three times. This has happened amidst global price increases, and the government kept the pump prices unchanged at Le 7,000 per litre for 6 months and Le 10,000 since July 2021.

Sierraloaded reports that only Nigeria and Tunisia are selling fuel cheaper than Sierra Leone. An increment from Le 10,000 to Le 12,000 will inform the government’s decision to be able to salvage the country’s economic situation through revenue generation.