Liberia’s petroleum market has been sent into a tailspin following the release of the September 2025 petroleum price circular, which private terminal owners assert would bankrupt their operations and wipe out more than $300 million worth of investments.
With one voice, terminal owners are calling for the government to implement remedial measures with immediate effect, warning that the policy not only imperils their viability but also exposes the nation’s energy security and investor confidence to destabilization.
The directive has reduced the storage fee from $0.35 per gallon to $0.05 per gallon, a reduction of 86%. Though the action was meant to reduce the pump price to $0.07 for consumers, industry players argue it has instead increased the local fees by $0.07 per gallon, which is contrary to its initial purpose.
“This is not just unfair—it is unworkable,” one terminal owner said. “No operator can sustain operations, service debt, and pay staff at this rate. It will drive companies into insolvency.”
Liberian petroleum terminal owners have collectively invested over US$300 million during the last decade in port facilities, depots, fueling stations, and transportation infrastructure across Liberia. The majority of this was financed by loans from reputable international and local banks.
These loans, owners explained, were taken in line with the government’s pricing formula that included storage costs and finance. By suddenly removing these critical components, the new policy exposes them to immediate default risk with financiers.
“If this circular is not changed, the banks will begin to call back loans, and the first to close their businesses will be Liberian-owned enterprises,” another operator said. “That will mean job losses, idle infrastructure, and a disrupted supply chain.”
The second major concern is the removal of financing costs from the price structure. In Liberia, where interest rates and borrowing costs are among the highest in West Africa, this is seen as a knockout blow.
“Commodity trading anywhere in the world requires financing,” said one stakeholder. “Removing financing costs is commercially unsustainable and makes it impossible to do business. This alone could push companies out of the market.”.
Terminal owners also raised an alarm over what they refer to as a systemic conflict of interest due to the Liberia Petroleum Refining Company’s position as both competitor and regulator.
Ever since it became a market player, they argue, LPRC has persistently been making regulatory adjustments to favor its own business to the detriment of private investors.
“You can’t be player and referee,” Liberian terminal owners emphasized. “Every adjustment they bring in squeezes the private operators and tightens their own grip.”
Liberia already has one of the region’s most challenging financing risk profiles, which makes capital costly and hard to access. Private-sector leaders are concerned that the September circular will further erode investor confidence, deter capital inflows, and undermine efforts by returning Liberian entrepreneurs to play a role in the economy.
This policy tells investors that regulations can change overnight and always in a way to be against them,” exclaimed a petroleum importer. “It raises Liberia’s already weak financing profile and jeopardizes broader economic growth.”.
LPRC has defended the policy, stating that it will maintain low petroleum prices for consumers. This has been challenged by terminal owners, who point out that prices are determined against international benchmarks (Platts), in consultation with importers and the Ministry of Commerce—not LPRC single-handedly.
“If LPRC wishes to truly demonstrate that it can lower costs, then open the market and let everyone compete,” one terminal operator dared. “The Liberian people will see who is truly offering the best prices.”
LPRC has also accused most terminal owners of paying back bank loans. Terminal operators characterized this as false and misleading, noting that all operators still owe international and local banks.
“These are multi-year loans that were being repaid based on government-approved formulas,” one operator said. “Changing the rules now undermines the very repayment structures that banks relied on to lend us the money.”
Terminal owners are now urging President Joseph Boakai’s administration, the Legislature, and the Ministry of Commerce to intervene immediately to prevent a collapse of the sector.
“This is about more than businesses,” an industry leader noted. “It’s about jobs, economic stability, energy security, and investor confidence. If the government wants to see Liberia attract investment, the government must provide a level and predictable environment. We cannot build the economy on changing rules to benefit just one player.”
Petroleum terminal owners have warned that if the circular is not revised with speed, Liberia stands to lose not only the shutdown of businesses but also a future of low competition, higher consumer prices, and dependence on a single state-owned entity.
“This is a moment of truth,” they continued. “Government must decide whether it wants a competitive, investor-friendly petroleum sector or a state monopoly that will ultimately fail the Liberian people.”
Like this:
Like Loading…
