Published: September 15, 2025
MONROVIA — Liberia’s private petroleum storage operators are warning of sector-wide collapse after the Liberia Petroleum and Refining Company (LPRC) slashed storage fees from $0.35 to $0.20 per gallon, a move they call a “quasi-monopoly” designed to consolidate power under the state-owned company.
The new policy, issued in September 2025, has ignited a heated dispute between government regulators and private tank owners, who say the cuts strip away critical revenue streams, making it impossible to service loans or sustain operations in a sector valued at more than $300 million.
Operators Say Policy Threatens Survival
“Storage at five cents per gallon does not even cover operational costs, let alone allow us to repay loans to banks,” one operator told The Liberian Investigator. Another added that the combined loss of storage fees and premium allowances would “push Liberian-owned companies into insolvency.”
The operators argue that the circular, instead of reducing pump prices, has added $0.07 in local fees per gallon, increasing costs for consumers. They also condemned the removal of financing costs from the pricing formula, calling it unrealistic in a market where borrowing rates are among the highest in West Africa.
“Petroleum imports cannot function without credit facilities, and this decision only increases risk for those who have taken loans,” one operator warned.
LPRC Defends Consumer Relief
LPRC maintains that the reforms are meant to ease pressure at the pump and raise additional revenue for the government. Officials argue that trimming storage fees frees up funds for consumers while redirecting a share into social programs.
But tank owners counter that LPRC is acting as “both player and referee,” using its dual role as regulator and competitor to tilt the industry in its favor. “Every regulatory change over the past few years has tilted in favor of LPRC,” one operator said. “This is not fair competition—it is systemic conflict of interest.”
Bility and Moye Split on Policy
The political class is also divided. Representative Musa Hassan Bility of Nimba County District 7 backs the operators, calling the circular “a deliberate attempt to cripple Liberian entrepreneurs” while consolidating power under LPRC. He warned the policy would harm jobs, families, and national energy security.
Sen. Prince Moye of Bong County, who chairs the Senate Ways, Means, Finance and Budget Committee, defended the cuts, arguing that the reform will raise $16.6 million annually for the national budget. He said the funds would support programs including road equipment and essential drugs.
Moye also accused companies of exaggerating losses and singled out Srimex, one of the largest private terminal owners, of profiteering by renting out tanks rather than engaging in direct trade.
Analysts Flag Risks to Investment
Industry analysts say the stakes reach beyond the fuel market. Liberia already struggles with one of the highest risk profiles for financing in the region, and sudden policy changes threaten to further undermine investor confidence.
“This kind of policy instability sends the wrong signal to international lenders and returning Liberian entrepreneurs,” one analyst warned. “Why would anyone invest in a country where the government can suddenly rewrite rules to eliminate margins overnight?”
Wider Investment Climate at Stake
Private tank owners argue the new circular is more than a fuel-sector dispute. They warn it could damage Liberia’s reputation as an investment destination across industries.
“This is not just about us,” one operator said. “If the rules can change overnight in petroleum, tomorrow it could be any other sector. That is the real danger.”
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