The Senate has opened a public hearing to examine the Liberia Petroleum Refining Company (LPRC) future, focusing on a proposal to strip the entity of its regulatory functions and limit its role to petroleum storage and importation.
The hearing has drawn key stakeholders, including officials from the National Road Fund, the Liberia Petroleum Refining Company (LPRC), and the National Oil Company of Liberia (NOCAL). The debate centers on whether the proposed restructuring aligns with international best practices or poses risks to the country’s petroleum sector.
Grand Kru County Senator Albert Chea, who initiated the discussion, argued that LPRC’s dual role as both regulator and market participant creates conflicts of interest. He insisted that Liberia adopt a model ensuring transparency and fair competition.
“You cannot be both a referee and a player in the sector,” Chea stated, emphasizing the need for reforms to prevent regulatory biases.
However, LPRC Managing Director Amos Tweh firmly opposed the unbundling, warning of severe consequences if the institution’s regulatory functions are removed. He outlined three key concerns: potential supply chain instability, massive job losses, and the risk of market manipulation by private importers.
Tweh argued that LPRC’s oversight helps prevent petroleum crises and price volatility. He pointed out that private importers already dominate the sector, controlling 70% of petroleum imports and 71% of storage capacity, while LPRC maintains only 29% of storage.
“The LPRC is the first point of contact in case of a petroleum crisis,” Tweh asserted. “If we lose that oversight, Liberia could face severe disruptions in fuel supply.”
He also warned that downsizing LPRC’s operations could lead to widespread layoffs, affecting nearly 900 employees and posing serious socio-economic challenges.
