Govt Is Not Subsidising Fuel, but Lowering Taxes — APC Flagbearer Aspirant and Economist
APC flagbearer aspirant and economist Dr. Victor A. B. Davies has argued that the Government of Sierra Leone is not subsidising fuel prices but is instead reducing taxes imposed on petroleum products.
Speaking on Radio Democracy, Dr. Davies said the Government was using the wrong terminology by describing its intervention in fuel pricing as a subsidy.
According to him, the high pump price of fuel in Sierra Leone is largely influenced by taxes imposed on petroleum products. He argued that the Government could significantly reduce the price of fuel by cutting or removing some of these taxes.
Dr. Davies further linked the country’s fuel taxation to what he described as excessive government expenditure, including overseas travel and the expansion of the Cabinet.
“Until they cut down on its expenditure and bloated Cabinet expansion,” he said, arguing that greater fiscal discipline could create room for lower fuel prices.
The APC flagbearer aspirant further stated that if no tax were imposed on petrol, the product could be sold at around NLe32 per litre.
He added that if the Government were genuinely subsidising fuel, the pump price should be below NLe30 per litre, while arguing that the current pricing structure reflects what he described as “heavy taxation” on petroleum products.
Dr. Davies also claimed that Sierra Leone has the highest fuel price in the sub-region, attributing this to what he described as the heavy taxes imposed by the Government on petroleum products.
His comments come amid continued public discussion over fuel pricing, taxation and the Government’s role in determining pump prices.
