The Managing Director of the Liberia Petroleum Refining Company (LPRC), Amos Tweh, has warned that any move to reduce the company’s scope of operations could lead to massive job losses. His remarks came in response to a proposal by Grand Kru County Senator Albert Chie, who has urged the Senate to review and unbundle the LPRC’s responsibilities.
In his communication to the Senate, Senator Chie argued that restructuring LPRC’s role would enhance the country’s energy sector without disrupting its functions. He contended that the state-owned refinery currently acts as both a regulator and an operator, a structure he said was inconsistent with international best practices. Chie cited the Liberia Electricity Corporation (LEC) and the National Oil Company of Liberia (NOCAL) as examples of energy institutions that have been unbundled and are now overseen by regulatory authorities.
“For international best practice, the functions of policy oversight, regulatory oversight, and operations should be housed in three distinct institutions, not in a single entity,” Chie stated during a Senate hearing on February 13, 2024. He proposed the creation of a separate regulatory authority for the downstream petroleum sector.
However, Managing Director Tweh pushed back against the proposal, emphasizing LPRC’s strategic national role as both a regulator and an employer. He pointed out that although LPRC does not import petroleum products, private importers already control nearly 100 percent of the market, and yet LPRC remains a major employer with over 900 Liberians on its payroll.
“This employment figure is nearly ten times greater than that of all private players in the downstream petroleum sector combined,” Tweh said. “Our employees are not just workers but economic pillars in their communities.”
Tweh argued that maintaining LPRC’s current structure is essential for national security, price stability, and overall economic resilience. He warned that stripping LPRC of its regulatory authority would limit market participation and weaken Liberia’s ability to manage its petroleum sector, leaving the country vulnerable to supply crises.
“Honorable Senators, as an institution, we maintain that national security and market stability must be safeguarded. A diversified LPRC ensures effective government oversight, preventing total reliance on private importers who may prioritize profits over national interest,” Tweh stressed.
Recalling Liberia’s 2020 fuel crisis, Tweh highlighted the dangers of an unregulated market where private entities had full control over petroleum supply, leading to severe shortages. He also pointed to a neighboring country facing similar fuel shortages after privatizing its entire downstream sector, reinforcing the need for strong government oversight.
“The availability of petroleum products is a top priority for the Boakai-Koung administration, and maintaining LPRC’s full responsibilities is essential to avoiding future supply disruptions,” he said.
Tweh further noted that Liberia’s current fuel storage capacity is heavily skewed towards private terminal owners, with LPRC holding just 29 percent. He advocated for increased government control over fuel importation and storage to enhance energy security.
On the economic front, Tweh warned that reducing LPRC’s role would lead to significant job losses. He projected that at least 500 employees could face layoffs if the Senate unbundles the company’s operations.
“We are urging the Senate to consider the broader economic implications of this proposal. Downsizing LPRC’s functions would not only disrupt livelihoods but could also destabilize Liberia’s energy sector,” he concluded.
