The Government of Liberia is expected to raise an estimated US$17 million annually through new petroleum levies, following a presidential directive to the Liberia Petroleum Refining Company (LPRC) to adjust the petroleum pricing structure. The move is intended to fund social programs and provide critical equipment support to counties across the country.
The directive comes after a joint Senate committee, comprising members of the Committees on Ways, Means, Finance & Budget; Judiciary; Public Corporations; Commerce; Hydrocarbon; and Public Accounts on State-Owned Enterprises, held public hearings to assess the fairness of Liberia’s existing petroleum pricing system. Stakeholders in the downstream petroleum sector, including LPRC’s Managing Director, participated in the hearings. The committee submitted its findings to the Plenary of the Senate, which, after deliberations, forwarded recommendations to President Joseph Nyuma Boakai.
Acting on the Senate’s advice, President Boakai instructed the LPRC to remove the previous financing cost and create a new line item, “Support to Government Social Programs,” at $0.02 per gallon. He also directed the introduction of another line item, “Support to County Equipment,” at $0.09 per gallon. Combined, these levies add $0.11 per gallon. With Liberia’s annual fuel import volume estimated at 154,652,417 gallons, the measures are projected to generate about US$17.01 million in revenue each year.
According to the LPRC, the new revenue stream will serve two critical government priorities: keeping fuel affordable for consumers while ensuring resources are available to support essential infrastructure and development needs at both the national and county levels.
The government has emphasized that these adjustments will not affect the commercial margins of petroleum market participants. The existing margins remain intact, with importers receiving $0.14 per gallon, distributors $0.05 per gallon, and retailers $0.20 per gallon.
In a statement, the LPRC reaffirmed its commitment to transparency, fairness, and accountability, assuring the public that the new measures are carefully designed to balance consumer protection with national development objectives.
“With international development assistance (IDA) declining, these measures represent a sustainable, homegrown solution for financing Liberia’s priority social programs and infrastructure,” the LPRC noted.
The petroleum pricing adjustments mark a significant shift in how Liberia funds critical development needs, signaling the Boakai administration’s focus on reducing reliance on external aid by mobilizing domestic resources.
