Liberia’s petroleum industry has been plunged into crisis following the release of the September 2025 petroleum pricing circular, which private terminal owners say could bankrupt their businesses and wipe out more than $300 million in investments.
In a unified stance, terminal owners are calling on the government to take immediate corrective action, warning that the policy not only jeopardizes their survival but also risks destabilizing the nation’s energy security and investor confidence.
The circular has drastically reduced the storage fee from $0.35 per gallon to $0.05 per gallon, representing an 86 percent cut. While the measure was intended to reduce pump prices for consumers, industry stakeholders insist it has instead increased local fees by $0.07 per gallon, contradicting its stated purpose.
“This is not just unfair–it is unworkable,” a terminal owner said. “No operator can sustain operations, service debt, and pay employees at this rate. It will drive companies into insolvency.”
Keep up with the latest headlines on WhatsApp | LinkedIn
Over the last decade, Liberian petroleum terminal owners have collectively invested over US$300 million in port facilities, depots, fueling stations, and transportation infrastructure across Liberia. Much of this was financed through loans from reputable international and local banks.
These loans, owners explained, were approved based on the government’s pricing formula, which included storage fees and financing costs. By suddenly removing these critical components, the new policy places them in direct default risk with creditors.
“If this circular is not revised, banks will begin recalling loans, and Liberian-owned companies will be the first to collapse,” warned another operator. “That will mean job losses, idle infrastructure, and a weakened supply chain.”
Another major concern is the removal of financing costs from the pricing formula. In Liberia, where interest rates and borrowing costs are among the highest in West Africa, this exclusion is seen as a fatal blow.
“Commodity trading anywhere in the world requires financing,” one stakeholder explained. “Removing financing costs is commercially unrealistic and makes operations impossible. This alone could push companies out of the market.”
Terminal owners also raised alarms over what they describe as a systemic conflict of interest created by the Liberia Petroleum Refining Company’s dual role as both regulator and competitor.
Since entering the market as a player, they argue, LPRC has consistently introduced regulatory changes that favor its own operations while undermining private investors.
“You cannot be both referee and player,” Liberian terminal owners emphasized. “Every adjustment they make squeezes private operators while consolidating their own power.”
Liberia already carries one of the highest financing risk profiles in the region, which makes capital scarce and expensive. Private-sector leaders fear the September circular will further erode investor confidence, discourage capital inflows, and undermine efforts by returning Liberian entrepreneurs to contribute to the economy.
“This policy tells investors that the rules can change overnight and always against them,” a petroleum importer said. “It amplifies Liberia’s already fragile financing profile and threatens broader economic growth.”
The LPRC has defended the policy, claiming it will help keep petroleum prices low for consumers. But terminal owners dispute this, pointing out that prices are determined by international benchmarks (Platts), in coordination with importers and the Ministry of Commerce–not by LPRC alone.
“If LPRC truly wants to prove it can lower costs, then open the market and let all players compete,” one terminal operator challenged. “The Liberian people will see who is really offering the best prices.”
LPRC has also claimed that most terminal owners have already paid off their bank loans. Terminal operators dismissed this as false and misleading, stressing that all operators still carry obligations to international and local banks.
“These are multi-year loans that were being repaid based on government-approved formulas,” one operator said. “Changing the rules now undermines the very repayment structures that banks relied on to lend us the money.”
Sign up for free AllAfrica Newsletters
Get the latest in African news delivered straight to your inbox
Terminal owners are now urging President Joseph Boakai’s administration, the Legislature, and the Ministry of Commerce to intervene immediately to prevent a collapse of the sector.
“This is about more than just businesses,” an industry leader emphasized. “It’s about jobs, economic stability, energy security, and investor confidence. If the government wants Liberia to attract investment, it must create a fair and predictable environment. We cannot build the economy on shifting rules that only benefit one player.”
The petroleum terminal owners warn that if the circular is not urgently reviewed, Liberia could face not only company closures but also a future of reduced competition, higher consumer prices, and dependence on a single state-run entity.
“This is a defining moment,” they concluded. “The government must decide whether it wants a competitive, investor-friendly petroleum sector or a state-controlled monopoly that will ultimately fail the Liberian people.”
