CAPITOL HILL – The Managing Director of the Liberia Petroleum Refining Company (LPRC), Amos Tweh, has warned the Liberian Senate’s Committee on Hydrocarbon, Energy, and Environment that unbundling the entity could result in the downsizing of over 500 employees and severely disrupt its operations.
Recently, Grand Kru County Senator Albert T. Chie wrote to the Senate, urging a review of LPRC’s structure and the possibility of unbundling its responsibilities. The former President Pro-Tempore argued that LPRC should not simultaneously serve as both a player and a regulator in Liberia’s petroleum market.
“I believe if we unbundle LPRC, it will enhance the country’s energy sector rather than disrupt its functions,” Senator Chie stated. “For the sake of this hearing, let it be clear that this issue is not personal; it is about strengthening the energy sector in the best interest of the country.”
Chie emphasized that LPRC currently regulates itself, highlighting the need to separate some of its responsibilities. He referenced the unbundling of entities such as the Liberia Electricity Corporation (LEC) and the National Oil Company of Liberia (NOCAL), which now have distinct regulatory authorities.
The senator further cited international best practices, stating that policy oversight, regulatory oversight, and operational functions should be managed by three separate institutions rather than being consolidated within a single entity, as is currently the case at LPRC.
MD Tweh’s Response
In his testimony before the Senate Committee, chaired by Bomi County Senator Edwin Melvin Snowe, MD Tweh strongly opposed the unbundling proposal.
“Senators, there is no need to disrupt LPRC’s operations. Unbundling the entity would force management to downsize over 500 employees, placing an additional burden on the government at a time of economic challenges,” he argued.
Tweh stressed the significance of LPRC as both a regulator and a strategic national asset, pointing out that private importers currently control nearly 100% of Liberia’s petroleum supply. Despite this, he noted that LPRC employs over 900 Liberians—significantly more than private sector players in the industry.
“All our employees serve not only as workers but also as economic pillars in their respective communities,” Tweh added.
Unbundling LPRC: A Threat to Jobs and National Security
MD Tweh maintained that LPRC’s current structure supports national security, job creation, price stability, and overall economic resilience. He warned that stripping the entity of its regulatory authority could weaken market stability and limit government oversight in the petroleum sector.
“Honorable Senators, maintaining a strong LPRC ensures national security and market stability. A fragmented regulatory structure would place excessive reliance on private importers, who may prioritize profit over national interest,” Tweh noted.
Lessons from the 2020 Fuel Crisis
While defending LPRC’s current role, Tweh referenced the 2020 fuel crisis, which highlighted the risks of an unregulated petroleum market. He explained that allowing private entities to fully control petroleum imports could expose Liberia to supply disruptions and economic instability.
“One of our neighboring countries that privatized its downstream petroleum sector is now facing chronic fuel shortages. Liberia must learn from this and maintain a strong government presence in the sector,” he warned.
Tweh also emphasized that ensuring petroleum availability remains a priority for the Boakai-Koung administration, making it crucial for LPRC to retain its existing responsibilities.
“If the government does not maintain a regulatory role, Liberia could face similar challenges to those in other nations that have relinquished control of their petroleum sectors,” he cautioned.
He further revealed that LPRC currently has only 29% storage capacity, with the remaining 71% controlled by private terminal owners. Given this disparity, he argued that LPRC should have greater authority over importation and regulation to guarantee fuel security.
Senate Committee’s Next Steps
Following the hearing, the Senate Committee placed MD Tweh and other witnesses under oath, requiring them to reappear at a later date. The committee cited limited time for addressing members’ concerns and will schedule a follow-up hearing before presenting its findings to the Senate plenary.
Discussion about this post