By Tanu Jalloh

Government Friday agreed to modify certain cost centres to accommodate the increase in pump prices after close to three months negotiating considerations on subsidies with oil markers to avert the latest increase in petroleum products.

The government's last intervention was on March 10, 2008; a move oil importers said went a long way to cushion fuel prices at Le 14,500 since a slight increase from Le13,500 in late last year.

Marketing manger Sidi A Bakarr of the national petroleum company, NP, told journalists in Freetown that dramatic changes prompted by international oil market prices recently went haywire and could no longer be controlled by the government.

“These changes which have been occurring since mid last year continue to impose impossible conditions for the retention of current pump prices in the country whist the exchange rate continues to be fairly constant, there have been increases in the procurement price of petrol by $175.28 per metric ton, diesel by $294.24 per metric ton, kerosene by $252.06 per metric ton and fuel oil by $84.72 per metric ton since December 3, 2007,” he said.

Flanked by Mohamed Kallon, finance controller of TOTAL, and Frank Martin, oil movement officer at the Petroleum Unit, Bakarr said as a result of these consequences, oil marketing companies in the country in consultation with the petroleum unit had increased with immediate effect the prices for all petroleum products.

“The price petrol, diesel and kerosene moved from Le14,500 to 16,500 and fuel oil from Le7785 to Le8767.63,” he announced but assured the public that the situation would be under constant review and that prices would be reviewed downwards or upwards as the trends dictate.