Monrovia – The Authorities of Liberia’s resolution to impose a brand new petroleum pricing construction has sparked heated debate amongst lawmakers and the general public, with critics warning of dire penalties for Liberian-owned companies and jobs, whereas others argue the transfer will strengthen state revenues and enhance oversight.
By Gerald C. Koinyeneh, [email protected]
Consultant Musa Hassan Bility (District #7, Nimba County) described the measure as a “dangerous maneuver” that dangers crippling domestically owned petroleum terminals and undermining Liberian entrepreneurship within the power sector.
“The intent of Authorities’s motion is to divert cash away from Liberian terminal operators and redirect to LPRC, with the intent to weaken Liberian possession, silence Liberian innovation,” Bility stated. “The online impact is to successfully shut down Liberian-owned petroleum terminals, and centralize energy within the palms of some. This resolution not solely threatens our power safety, but additionally undermines Liberian jobs and households as there is no such thing as a means that terminal operators can stay in enterprise if the Authorities carries out this motion.”
Boakai’s Directive
On September 3, President Joseph Boakai issued a mandate (Ref: JNB/MOS/RL/3010/2025) instituting a revised petroleum pricing construction. He stated the choice was pushed by the federal government’s dedication to sustaining inexpensive gasoline costs for shoppers whereas securing funds for essential infrastructure, significantly the Highway Fund.
Underneath the mandate, which took quick impact, the next charges are to be remitted per gallon of petroleum:
- Storage Charges (All Terminals): US$0.05
- Highway Fund (LRA): US$0.30
- Counties’ Highway Gear Assist (LRA): US$0.09
- Authorities Social Program: US$0.02
- Inspectorate & Upkeep Price (LPRC): US$0.06
- Vessel Discharge Charges (LPRC): US$0.08
- Testing & Dealing with Charges (LPRC): US$0.07
- Importers’ Margin: US$0.14
- Retailers’ Margin: US$0.20
- Distributors’ Margin: US$0.05
The directive was adopted by a memo from Liberia Petroleum Refining Firm (LPRC) Managing Director Amos Tweah, instructing importers and storage tank homeowners to proceed remitting these charges, together with royalties, on to the LPRC. Tweah careworn that the duty for inspectorate, vessel discharge, testing, dealing with, and adjusted storage charges lies with importers.
“We belief that you’ll implement these modifications with the urgency and seriousness they require. The LPRC is dedicated to working with all stakeholders to make sure a seamless implementation of this presidential mandate. Our shared objective is to foster a steady, clear, and environment friendly petroleum sector that contributes to the expansion and improvement of our nation,” Tweah stated.
Bility Pushes Again
Rep. Bility criticized the directive, saying it slashes storage charges payable to Liberian terminal operators from US$0.35 to US$0.02 per gallon whereas creating new “technical” value traces that profit the LPRC.
He argued that the coverage undermines personal investments within the sector.
“This resolution not solely threatens our power safety however undermines Liberian jobs and households as there is no such thing as a means terminal operators can stay in enterprise. The function of presidency is to create an enabling surroundings the place the personal sector can flourish, however this motion immediately contravenes that function. It’s a deliberate try to cripple Liberian entrepreneurs who’ve invested hundreds of thousands into infrastructure, expertise, and workforce to stabilize the petroleum sector.”
Bility, additionally proprietor of Srimex Oil and Fuel Firm, stated the directive sacrifices Liberian-owned companies “underneath the pretense of worth reduction.” He known as on the federal government to halt the motion, have interaction in clear consultations with operators, and pursue reforms that genuinely profit Liberians slightly than political pursuits.
Grey Cites Constitutional Breach
Former Montserrado County Consultant Acarous M. Grey weighed in, accusing the LPRC of violating the Structure by levying charges with out legislative approval.
Grey cited Article 34(d)(i) & (iii), which vests taxation and revenue-raising authority completely within the Legislature. He stated the LPRC’s motion amounted to usurpation of legislative powers and obstruction of legislative duties underneath Article 44.
Sen. Moye Defends the Determination
However Senator Prince Moye of Bong County defended the brand new construction, calling it a essential correction to a flawed system that lengthy disadvantaged the state of income whereas enriching personal tank homeowners.
“I come largely to thank the President of the Republic of Liberia for giving the Legislature the urge for food to carry out its constitutional duties,” Moye stated. “Everyone was benefiting from the US$0.35 cents, not considering the element of that US$0.35 cents the LPRC was actually performing. This has been enterprise as ordinary and our investigation didn’t goal anybody.” s
Moye, who chairs the Senate’s Joint Committee on Methods, Means, Finance & Price range; Judiciary; Public Companies; Commerce & Trade; and Hydrocarbons, stated the investigation advisable decreasing the storage price from US$0.35 to US$0.10 per gallon and adjusting the US$0.40 financing cost to 1% of the CIF worth. President Boakai later authorized an additional discount to US$0.05 per gallon.
He stated the revised construction will redirect vital income to authorities, projecting US$1.9 million from financing prices and US$4.5 million from storage charges via December 2025. He added that projected 2026 revenues may attain US$16.6 million, with allocations for well being providers, important medicine, HIV/AIDS and TB therapy, and nationwide street initiatives.
Moye argued the reforms will decrease prices for fundamental commodities corresponding to rice, flour, and eggs, whereas curbing “kickbacks” within the petroleum trade. He additionally urged the Liberia Income Authority (LRA) to audit personal tank homeowners engaged in unlawful storage preparations with importers, stressing that the federal government should acquire overdue rental earnings taxes.
A Divided Legislature
Observer say the talk underscores a rising divide over how greatest to steadiness authorities income wants with the survival of personal operators in a significant sector. Whereas some lawmakers see the transfer as a step towards transparency and income mobilization, others warn it may suffocate personal competitors and drive Liberian companies out of the market.
For a lot of observers, the unanswered query stays: Who will actually profit — the Liberian folks, or a choose few?
