Monrovia – The Government of Liberia’s decision to impose a new petroleum pricing structure has sparked heated debate among lawmakers and the public, with critics warning of dire consequences for Liberian-owned businesses and jobs, while others argue the move will strengthen state revenues and improve oversight.
By Gerald C. Koinyeneh, [email protected]
Representative Musa Hassan Bility (District #7, Nimba County) described the measure as a “harmful maneuver” that risks crippling locally owned petroleum terminals and undermining Liberian entrepreneurship in the energy sector.
“The intent of Government’s action is to divert money away from Liberian terminal operators and redirect to LPRC, with the intent to weaken Liberian ownership, silence Liberian innovation,” Bility said. “The net effect is to effectively shut down Liberian-owned petroleum terminals, and centralize power in the hands of a few. This decision not only threatens our energy security, but also undermines Liberian jobs and families as there is no way that terminal operators can remain in business if the Government carries out this action.”
Boakai’s Directive
On September 3, President Joseph Boakai issued a mandate (Ref: JNB/MOS/RL/3010/2025) instituting a revised petroleum pricing structure. He said the decision was driven by the government’s commitment to maintaining affordable fuel prices for consumers while securing funds for critical infrastructure, particularly the Road Fund.
Under the mandate, which took immediate effect, the following fees are to be remitted per gallon of petroleum:
- Storage Fees (All Terminals): US$0.05
- Road Fund (LRA): US$0.30
- Counties’ Road Equipment Support (LRA): US$0.09
- Government Social Program: US$0.02
- Inspectorate & Maintenance Fee (LPRC): US$0.06
- Vessel Discharge Fees (LPRC): US$0.08
- Testing & Handling Fees (LPRC): US$0.07
- Importers’ Margin: US$0.14
- Retailers’ Margin: US$0.20
- Distributors’ Margin: US$0.05
The directive was followed by a memo from Liberia Petroleum Refining Company (LPRC) Managing Director Amos Tweah, instructing importers and storage tank owners to continue remitting these fees, along with royalties, directly to the LPRC. Tweah stressed that the responsibility for inspectorate, vessel discharge, testing, handling, and adjusted storage fees lies with importers.
“We trust that you will implement these changes with the urgency and seriousness they require. The LPRC is committed to working with all stakeholders to ensure a seamless implementation of this presidential mandate. Our shared goal is to foster a stable, transparent, and efficient petroleum sector that contributes to the growth and development of our nation,” Tweah said.
Bility Pushes Back
Rep. Bility criticized the directive, saying it slashes storage fees payable to Liberian terminal operators from US$0.35 to US$0.02 per gallon while creating new “technical” cost lines that benefit the LPRC.
He argued that the policy undermines private investments in the sector.
“This decision not only threatens our energy security but undermines Liberian jobs and families as there is no way terminal operators can remain in business. The role of government is to create an enabling environment where the private sector can flourish, but this action directly contravenes that role. It is a deliberate attempt to cripple Liberian entrepreneurs who have invested millions into infrastructure, technology, and workforce to stabilize the petroleum sector.”
Bility, also owner of Srimex Oil and Gas Company, said the directive sacrifices Liberian-owned businesses “under the pretense of price relief.” He called on the government to halt the action, engage in transparent consultations with operators, and pursue reforms that genuinely benefit Liberians rather than political interests.
Gray Cites Constitutional Breach
Former Montserrado County Representative Acarous M. Gray weighed in, accusing the LPRC of violating the Constitution by levying fees without legislative approval.
Gray cited Article 34(d)(i) & (iii), which vests taxation and revenue-raising authority exclusively in the Legislature. He said the LPRC’s action amounted to usurpation of legislative powers and obstruction of legislative duties under Article 44.
Sen. Moye Defends the Decision
But Senator Prince Moye of Bong County defended the new structure, calling it a necessary correction to a flawed system that long deprived the state of revenue while enriching private tank owners.
“I come mostly to thank the President of the Republic of Liberia for giving the Legislature the appetite to perform its constitutional duties,” Moye said. “Everybody was benefiting from the US$0.35 cents, not taking into consideration the component of that US$0.35 cents the LPRC was truly performing. This has been business as usual and our investigation did not target anyone.” s
Moye, who chairs the Senate’s Joint Committee on Ways, Means, Finance & Budget; Judiciary; Public Corporations; Trade & Industry; and Hydrocarbons, said the investigation recommended reducing the storage fee from US$0.35 to US$0.10 per gallon and adjusting the US$0.40 financing charge to 1% of the CIF value. President Boakai later approved a further reduction to US$0.05 per gallon.
He said the revised structure will redirect significant revenue to government, projecting US$1.9 million from financing costs and US$4.5 million from storage fees through December 2025. He added that projected 2026 revenues could reach US$16.6 million, with allocations for health services, essential drugs, HIV/AIDS and TB treatment, and nationwide road projects.
Moye argued the reforms will lower costs for basic commodities such as rice, flour, and eggs, while curbing “kickbacks” in the petroleum industry. He also urged the Liberia Revenue Authority (LRA) to audit private tank owners engaged in illegal storage arrangements with importers, stressing that the government must collect overdue rental income taxes.
A Divided Legislature
Observer say the debate underscores a growing divide over how best to balance government revenue needs with the survival of private operators in a vital sector. While some lawmakers see the move as a step toward transparency and revenue mobilization, others warn it could suffocate private competition and drive Liberian businesses out of the market.
For many observers, the unanswered question remains: Who will really benefit — the Liberian people, or a select few?
