Sen. Nuquay claimed that many of these charges are either outdated, duplicative, or arbitrarily imposed without legislative oversight.
Monrovia – Margibi County Senator James Emmanuel Nuquay has raised concerns over what he describes as “harmful and unfair pricing” of petroleum products in Liberia, accusing the Liberia Petroleum and Refining Company (LPRC) and the Ministry of Commerce of imposing unnecessary charges that burden consumers.
By Obediah Johnson
In a communication to the Plenary of the Liberian Senate on Thursday, July 3, 2025, Senator Nuquay, who chairs the Senate Committee on Public Corporations, said about 16 different fees are embedded in the pricing formula for every gallon of diesel or gasoline sold in the country.
He claimed that many of these charges are either outdated, duplicative, or arbitrarily imposed without legislative oversight.
He noted that while some fees were created through legislative enactments, others are administrative charges periodically adjusted by the LPRC and the Commerce Ministry. He described the overall pricing structure as “alarming and troubling,” citing its negative impact on the LPRC’s operations and on ordinary Liberians.
“As you may be aware, LPRC until recently was the only entity storing petroleum products. The storage fees previously covered testing, handling, and regulatory oversight. Now, even with the entrance of private tank owners, those same charges remain in place and are applied to both LPRC and private operators,” Senator Nuquay stated.
He argued that this arrangement has diminished LPRC’s revenue potential and undermined its ability to contribute adequately to the national budget. The corporation’s increased operational costs, he said, have led to higher storage charges, which also benefit private tank owners who are not regulatory entities.
Senator Nuquay revealed that LPRC recently raised storage fees to US$0.35 per gallon, exceeding the national road fund levy, and suggested this was unjustified. He further criticized the inclusion of “financing costs” in the petroleum pricing formula—charges passed onto consumers to cover loans importers use to bring fuel into the country.
He listed the following financing costs per gallon: PMS (US$0.046), AGRO (US$0.052), JET A (US$0.11), and HFO (US$0.09), stating that “unlike rice and other essential commodities, Liberians are unfairly being made to pay import financing costs on every gallon of petroleum.”
“These are costs that should be borne by importers, not passed on to consumers,” he said.
Senator Nuquay also decried charges for fuel evaporation, currently listed as PMS (US$0.03), AGRO (US$0.02), JET A (US$0.03), and HFO (US$0.03) per gallon, noting that this was originally introduced when theft at LPRC facilities was high. With improved systems and reduced theft, he argued, evaporation charges should no longer be justified.
“There is no need to keep charging the Liberian people two or three cents for evaporation per gallon when the systems have improved and losses have been minimized,” he said.
He called on the Senate to instruct its Committees on Ways, Means, Finance, Energy, and Judiciary to review the pricing structure and its impact on LPRC revenue and to recommend appropriate policy changes. He also proposed that storage charges, like the National Road Fund, be legislated and standardized.
Senator Nuquay emphasized that eliminating financing and evaporation charges would help reduce fuel prices and ease the financial burden on Liberians.
“There are many essential commodities, but in this sector, we are paying importers for every gallon of fuel they bring in, including their loan repayments,” he said. “Some of these importers have operated for 20 or 30 years. Why should we continue to subsidize their financing?”
Following the communication, the Senate Plenary mandated its Joint Committee on Public Corporations, Energy and Environment, and Judiciary to investigate the matter and report within a specified period. The motion was filed by Nimba County Senator Samuel Kogar.
