Civil Society Consortium elucidates on Fuel Pricing Formula
By Lamin Bangura
On Thursday 26th June, 2025, a Civil Society Consortium held a press conference at the Sierra Leone Association of Journalists (SLAJ) conference hall to address public concerns regarding petroleum pricing and availability in Sierra Leone. The consortium emphasized its role in educating the public on issues of national interest, particularly in the downstream sector of the petroleum industry.
The discussion centered on the recently enacted National Petroleum Regulatory Authority (NPRA) Act 2025, a document that underwent Parliamentary approval. This Act rebrands the former Petroleum Regulatory Agency (PRA) as the NPRA, an authority now empowered to license and regulate all downstream petroleum activities, including importation, storage, transportation, retailing, refining, and bunkering. The consortium commended the current NPRA leadership, particularly Director General Brima Baluwa Koroma (formerly Executive Chairman of the PRA), for improving the supply situation and mitigating fuel shortages that previously led to price hikes, accidents, and fire disasters.
A key point of clarification from the consortium was that the NPRA is the sole institution mandated to fix petroleum product prices in Sierra Leone, whether upward or downward adjustments. This authority is enshrined in Section 12 of the NPRA Act 2025. The consortium stressed that no other institution or individual has the right to announce fuel prices.
The pricing formula for petroleum products was also explained, highlighting two primary factors: the international price of refined products (not crude oil) and the Leone-to-dollar exchange rate. Oil Marketing Companies (OMCs) purchase fuel in dollars, but sell to consumers in Leones. Various charges are factored into the pricing formula, including FOB (Free on Board) from Mediterranean markets, storage by metal box charges, petroleum jettisoning charges, freight levy, other charges, transfer fees, landed costs, distribution costs, debt recovery, petroleum fund, excise duty, road user charges, and uniform adjustment price.
Regarding the ongoing public debate about a flat rate for fuel, the consortium clarified its advocacy efforts and the NPRA’s stance. While the consortium initially pushed for a uniform price across all dealers, discussions with the NPRA led to an understanding rooted in Section 61 of the Act. This section emphasizes a price ceiling, meaning dealers cannot sell above the stipulated price (e.g., if the price is Le 27, selling at Le 27.1 is prohibited). However, to promote fair competition and in the public interest, dealers are permitted to sell below the market value. The NPRA also ensures that the origin of the product is known and that all stipulated taxes, which are a significant source of government revenue, are paid.
The consortium acknowledged the public’s pain regarding current fuel costs, stating that they too are consumers feeling the impact. They reiterated their role as a civil society organization to engage with the government and inform the public. The consortium expressed hope for a reduction in fuel prices in the near future, emphasizing the government’s responsibility to manage such issues. The NPRA reviews and adjusts pump prices monthly, issuing press releases signed by OMCs such as Leon Oil, Connex, Eco Energy, and NP. It was also noted that the government does not import fuel; OMCs are responsible for importation.