Sierra Leone's government has slashed petrol subsidies to help meet its debt obligations, leading to an overnight 30 percent spike at the pumps, Reuters reported. The move in the West African state comes amid rising street tensions across Africa over food and fuel inflation as surging world commodities prices hit. The World Bank fears a flurry of elections may add to tensions. Sierra Leone Minister of Trade and Industry Richard Konteh said the move would cut the country's annual fuel subsidy bill to $25 million from $50 million and help it repay debt. "($50 million) is what government has been subsidising for the past three years plus. That is really not sustainable," he said in an interview with Reuters." The country is scheduled to repay to the International Monetary Fund loans totalling roughly $120 million through 2025, including $5.3 million in 2011, according to the IMF Web site. Prior to May 01, the Sierra Leonean government was paying a subsidy of around 5,000-7,000 leones per imperial gallon of gasoline to maintain a retail price of 17,500 leones. The government has also been foregoing 80 percent of 3 billion leones in weekly excise revenue from fuel imports. The new fiscal regime for petroleum products axes the direct subsidy and continues the excise holiday. -- SPA
