[Siera Leone] Government mulls removing fuel subsidies to increase revenue stream
The government of Sierra Leone is contemplating removing subsidies on all petroleum products according to the National Petroleum Regulatory Agency.
Data Entry processing officer at the agency, Salieu Kamara said the price of fuel remains at $0.6 as a result of government’s payment of fuel subsidy, adding that government was losing $1 million on indirect subsidy each week and $265000 per week on direct subsidy.
He explained that indirect subsidy includes monies collected on excise duty and road users, while direct subsidy were monies that the government takes from the consolidated fund to subsidize fuel products in order to stabilize the price.
“Government is acquiring zero revenue in petroleum sales and is losing $1.3 million from direct and indirect subsidies on petroleum, and if the situation continues like this, the government will have no option but to remove the subsidy,” he warned.
According to him, the government takes money from the Consolidated Fund to pay oil marketing companies, while they forfeit all taxes in a bid to keep the fuel price at $0.6
Head of Petroleum Regulatory Agency, Dan Manson, said “Investment in the market is expanding and the supply and distribution has improved in 2016.We are expecting to keep it that way.”
He said their function was to regulate the oil marketing companies and oil business operators across the country to ensure efficient service delivery on a legal basis.
Deputy Minister of Information and Communications, Cornelius Deveaux, on the other hand said government was lobbying transport authorities to ensure that transport cost remained the same when the subsidy is removed.
