MONROVIA – September 11, 2025 – In a significant shift in petroleum sector policy, the Liberia Petroleum Refining Company (LPRC) has announced adjustments to the national petroleum pricing structure, following recommendations from the Liberian Senate and a directive from President Joseph Nyuma Boakai.
The changes, which took effect this week, are aimed at generating domestic revenue to support social development programs and county-level equipment acquisition, at a time when international aid is declining.
According to the LPRC, the new pricing structure introduces two additional levies totaling 11 cents per gallon of petroleum products:
- $0.02 per gallon for “Support to Government Social Programs”
- $0.09 per gallon for “Support to County Equipment”
Based on Liberia’s current annual petroleum import volume of approximately 154.6 million gallons, the new line items are projected to generate an estimated US$17.01 million per year.
Senate Hearings Prompt Reform
The adjustments follow an extensive public hearing held by a joint Senate committee, which included members from the Committees on Ways, Means, Finance & Budget; Judiciary; Public Corporations; Commerce; Hydrocarbon; and Public Accounts on State-Owned Enterprises.
During the hearings, key stakeholders in the downstream petroleum sector—including the Managing Director of the LPRC—were invited to assess the fairness and sustainability of the existing fuel pricing structure. After reviewing the committee’s findings, the Senate forwarded a set of formal recommendations to the Office of the President.
President Boakai subsequently instructed the LPRC to implement the reforms, citing the dual national priorities of:
- Preserving affordable fuel prices for the public
- Generating sustainable revenue for development at both national and county levels
Fuel Prices and Market Margins Remain Stable
Crucially, the LPRC emphasized that the revised pricing structure does not affect the commercial margins of fuel importers, distributors, or retailers.
These remain as follows:
- Importers’ Margin: $0.14 per gallon
- Distributors’ Margin: $0.05 per gallon
- Retailers’ Margin: $0.20 per gallon
This approach, according to the LPRC, ensures that consumers are not burdened with inflated prices while the government mobilizes resources to meet pressing developmental needs, especially in the face of dwindling International Development Assistance (IDA).
National Development, Local Empowerment
The introduction of the “Support to County Equipment” line item is intended to address long-standing challenges in local service delivery and infrastructure maintenance. County governments, which often face resource constraints, are expected to benefit directly from the funds generated under this category.
Meanwhile, the “Support to Government Social Programs” line item aims to strengthen nationwide initiatives in areas such as healthcare, education, sanitation, and youth empowerment.
LPRC Commits to Transparency and Accountability
In a public statement, the LPRC reaffirmed its commitment to transparency, fairness, and accountability in the administration of petroleum pricing and revenue management. The company pledged to work closely with all stakeholders to ensure the effective implementation of the new structure.
“These changes reflect our government’s commitment to responsible fiscal policy, equitable development, and service delivery,” the LPRC noted. “We remain dedicated to keeping the wheels of industry turning, while also contributing to national growth and stability.”
The new policy is also viewed as part of the Boakai administration’s broader effort to increase domestic resource mobilization and reduce Liberia’s dependency on external aid—a key campaign promise of the President, who has called for “self-reliance, institutional reform, and accountable governance.”
