๐๐ซ. ๐๐๐๐ฎ๐ฅ ๐๐๐๐ง ๐๐๐ง๐ ๐ฎ๐ซ๐.
I have just read a press release issued by Sierra Leoneโs Petroleum Regulatory Agency (PRA) announcing an upward review of fuel pump prices from NLe21.50 to NLe25.00 effective 1st August 2023.
Unlike some people who have chosen to castigate President Bioโs administration, I have chosen to pity his government because of the tough decisions needed under the complex economic situation that has gripped the world today.
Sierra Leone is not the only country removing subsidies. Many in Africa have done so. President Tinubu of Nigeria announced it in May this year and the country has started implementing it this July. Other countries like Ghana, Kenya, Senegal, Angola, etc have also done so, either fully or sequencing it.
Most times when there is a rise in global oil prices, governments are forced to increase fuel subsidies just to cushion the effect on their citizens, and that increase in subsidy may even surpass what they are supposed to spend on social protection. In just the first half of 2023, the government spent NLe783 Million, that is Le783 Billion Old Notes ($35M) on fuel subsidies alone.
Whilst we are concerned about the rise in pump prices and how it would reflect on commodity prices and transport fares, let us also bear in mind that government needs fiscal space to be able to invest in human capital โ agriculture, health, and education โ as well as in roads and other infrastructure programmes.
What we now need to advocate is for our government to consider social packages to cushion the effect on our citizens just the same way it did during COVID-19, as well as investing in public transportation, like buses, in the short term for our people, especially our school-going children.
Removal of fuel subsidies is needed for government to pay attention to social programmes that will improve living conditions as much as it is needed to stabilize the petroleum sector. Rather than politicizing and castigating government, let us appreciate that this was a long hard decision to take.
