Fuel Prices Increased
allafrica.com February 19, 2003 Posted to the web February 20, 2003 Augustine Beecher Freetown
The Management of the three major oil importing companies in the country, National Petroleum Company, Safecom and Mobil Sierra Leone Ltd. have decided to make price increases on their petroleum products with immediate effect.
The increases, which were announced during a press briefing yesterday, 17th February 2003 at the NP House in Freetown by the managers of the three oil importing companies in the country, were made in recognition of the changes that have taken place in the oil market since increase were last efected locally in October last year.
According to Mr. Vincent Kanu, Managing Director of the National Petroleum Company, the shortage experienced by the nation in the past weeks has been a result of negative development on the world oil market, prominent among which are the United States proposed war with Iraq (between the biggest oil consumer in the world and one of the biggest oil producers), the three-month long strike by oil workers in Venezuela, and the ongoing political crisis in the Ivory Coast.
These factors have not only led to a shortage of oil products on the local and world iol markets, the NP Managing Director said, but has also forced the prices of these products upwards.
With regards to the local market, Mr. Kanu disclosed that since December when the prices began to go up on the world market, two major local oil companies NP and Mobil have incurred over Le2 (two billion leones) due to their refusal to increase prices on the local market.
They have however been forced to increase prices this time, not because of their insensitivity to the plight of the people, which is always paramount, but because they can not continue to take the losses associated with the uncertainties of the oil industry.
The three local oil companies have hence decided, without any interference from the government, to increase the prices of basic petroleum products with immediate effect.
In this regard, Petrol now cost Le6, 050 (six thousand and fifty leones); Diesel, Le 6, 000 (six thousand leones); Kerosene, Le4, 750 (four thousand seven hundred and fifty leones) and Fueloil at Le3, 305 (three thousand three hundred and five leones).
The oil officials explained that to arrive at the current prices, both the local exchange rate and the international market price for oil were considered, along with the state of the current world events and the impact of the increases on the general populace.
The companies also consulted and collaborated with the Petroleum Unit, which is supposed to monitor the local oil industry operations, in their decision to make the price increases.
In a public announcement, the companies assured the public of the industry's commitment to rendering reliable and effective service at all times, and apologized for the temporary disruption in the supply of petrol to the public.
The officials present at the briefing were Mr. Vicent Kanu of the National Petroleum Company, Mr. Quincy Hegan, General Manager of Mobil Sierra Leone Limited, Mr. A.B. Ndoeka, Managing Director of Safecon, and Mr.
Tunde Cole of National Petroleum.