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    Home » LPRC New Tariff Sparks Controversy
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    LPRC New Tariff Sparks Controversy

    Chester SmithBy Chester SmithSeptember 12, 2025No Comments6 Mins Read
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    Musa Bility, Rule of Law Cacus, Others run to Court

    This week, the Liberia Petroleum Refining Company announced New Fuel Pricing Structure, seeking to balance affordable fuel costs for consumers while securing additional revenue for critical infrastructure projects, particularly the Road Fund.

    The new fees include includes Storage Fees (All Terminals): $0.05, Road Fund (LRA): $0.30, Support to Counties’ Road Equipment (LRA): $0.09, GOL Social Program: $0.02,

    Inspectorate and Maintenance Fee (LPRC): $0.06, Vessel Discharge Fees (LPRC): $0.08, Testing and Handling Fees (LPRC): $0.07, Importers’ Margin: $0.14, Retailers’ Margin: $0.20, and Distributors’ Margin: $0.05.

    Under this new pricing, Importers and terminal operators are required to remit these fees directly to the LPRC, in addition to existing royalty payments.

    LPRCE Managing Director Amos Tweh stated that the responsibility for paying inspectorate, vessel discharge, testing and handling, and adjusted storage fees rests with the importers.

    “The LPRC is committed to working with all stakeholders to ensure a seamless implementation of this presidential mandate,” Tweh stated in the circular. “Our shared goal is to foster a stable, transparent and efficient petroleum sector that contributes to the growth and development of our nation.” A statement from LPRC read.

    However, in the wake of the New Pricing, a disagreement has emerged between Liberia’s Rule of Law Caucus, a group of minority lawmakers, and the government, particularly concerning recent adjustments to the Liberia Petroleum Refining Company (LPRC)’s pricing structure. 

    On the heels of this new Pricing, Representative Musa Hassan Bility is currently involved in a legal dispute regarding new charges from the Liberia Petroleum Refining Company (LPRC), according to reports.  

    Representative Bility has accused the Liberian government of sabotaging local petroleum businesses by slashing storage fees from 35 cents to 2 cents per gallon, a move he says will cripple Liberian-owned terminals and centralize power in the state-run Liberia Petroleum Refining Company (LPRC). Bong County Senator Prince K. Moye, however, dismissed the accusations as “self-serving,” insisting the reform is designed to cut fuel costs and redirect millions of dollars into health care and infrastructure.

    “This is not about Representative Bility,” Moye told reporters at a packed Capitol press conference. “The decision is based on our investigation and recommendations, which the president endorsed. It is about making petroleum costs more affordable for ordinary Liberians.”

    n Liberia, private companies like Srimex Oil and Gas, owned by Bility, have invested heavily in infrastructure, while the government seeks to reclaim control and revenue streams.

    “A Deliberate Attempt to Cripple Liberian Entrepreneurs”, Rep. Musa Bility said.

    In a statement issued Tuesday, Bility condemned the government’s move as a betrayal of Liberian business interests.

    “The intent of the Government’s action is to divert money away from Liberian terminal operators and redirect it to LPRC, with the intent to weaken Liberian ownership and silence Liberian innovation,” Bility said. “The net effect is to effectively shut down Liberian-owned petroleum terminals and centralize power in the hands of a few.”

    Bility, who represents Nimba County District 7, warned that the policy threatens not only the survival of companies like Srimex but also Liberia’s broader energy security.

    “This decision not only threatens our energy security but also undermines Liberian jobs and families, as there is no way that terminal operators can remain in business if the Government carries out this action,” he said.

    He framed the dispute as a test of whether the government values its private sector. “The role of government is to create an enabling environment where the private sector can flourish and where Liberian businesses can benefit. This action … is a deliberate attempt to cripple Liberian entrepreneurs who have invested millions of dollars, much of which has not even been recovered, into infrastructure, technology, and workforce.”

    Bility noted that Srimex has been a backbone of the sector for more than 15 years. “This company has served the Liberian petroleum industry through importation and storage. No responsible government policy would sacrifice its own citizens’ businesses under the pretense of price relief.”

    Bility  is also accused of failing to pay a 10% rental fee to Liberia for the China Union Petroleum Storage Facility, which he is renting.

    The China Union storage facility has a capacity of 5.28 million gallons, and 10% of the revenue generated from its use is legally owed to Liberia. If the facility is used twice a month, the total fees owed could amount to approximately 1.05 million.

    Bility has not remitted any payments since taking over the facility.

    However, Bility has accused the Liberian government of sabotaging local petroleum businesses by cutting storage fees for terminal operators from 35 cents to 2 cents per gallon, a move he claims will cripple local companies.

    Bility argues this move threatens the survival of companies like Srimex Oil and Gas (which he owns) and could impact Liberia’s energy security and jobs.

    This situation stems from accusations that Representative Musa Bility has not paid rental fees for the China Union Petroleum Storage Facility, which he is operating. 

    Senator Prince K. Moye  dismissed Bility’s accusations as “self-serving”, stating that the fee reform is intended to reduce fuel costs for citizens and redirect millions into public services like healthcare and infrastructure.

    Senator Prince Moye of Bong County defended the changes, stating they are a necessary correction to a flawed system that previously favored private tank owners over the state.

    “The government projects that the new structure will generate significant revenue, with an estimated $1.9 million to be used for essential drugs and an additional $4.5 million to support county road equipment.” Senator Moye started.  

    Basis of the disagreement

    Government continued to maintained that its recent pricing are intended to Boost  revenue and lowering consumer costs.

    President Joseph Boakai introduced a revised petroleum pricing structure on September 3, 2025, which included new fees and adjustments to existing ones.

    Rule of Law Caucus’s position: Favoring private companies over state entities

    Like Representative Musa Hassan Bility,  the caucus claims the changes are harmful to Liberian-owned petroleum firms.

    The Rule of Law Caucus also states the directive by LPRC reduces storage fees for Liberian terminal operators while adding “technical” costs that benefit the LPRC.

    The caucus further notes that this the LPRC New Pricing could harm Liberian businesses, increase LPRC’s power, and potentially impact the country’s energy security.

    The disagreement reflects tension within the legislature over balancing government revenue and the role of private companies in the petroleum sector. The administration’s recent decision for LPRC to handle petroleum importation directly further indicates a move towards increased state involvement in the market.

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