Africa-Press – Liberia. The Liberian Senate moves here to relieve the Liberia Petroleum Refining Corporation of some of its current responsibilities that are being considered as conflict of interest.
Report from the Committees on Public Corporations, hydrocarbon and Environment, Judiciary, Human Rights, Claims and Petitions outlines strategy and meaningful recommendation to unbundle responsibilities of the Liberia Petroleum Refining Company (LPRC).
The Joint Committee report which was read in open Session of the 18-day sitting of the Liberian Senate on March 20, 2025, acknowledged the need for the unbundling of the petroleum sector.
According to the committee report, based upon engagements with stakeholders, policymakers and relevant government institutions, it’s important to reform in the downstream petroleum sector.
But, the committee warned that there is a need to address concern raised about legality, economy and benefits of the policy to Liberians, while requesting ample time for more research, analysis, legal structuring and policy adjustment that would ensure smooth transition to benefit both government and the people.
“Finally, this committee recommends that the proposal is a positive step towards national reform. However, the Committee recommends additional time for the proponent of this proposal to do more comprehensive research and studies covering overlapping regulatory function in the sector. Also, the review of the LPRC Corporate Chapter of 1978 and the 1989 Act granting the LPRC exclusive right over petroleum importation under its 1978 Act”, the report concluded.
Meanwhile, following reading of the communication, the plenary of the Liberian Senate in a motion from Grand Kru County Senator Albert Chie, has accepted to receive the report and debate the matter during their next sitting.
The committee was given the responsibility to hear and report to the senate for action, regarding the subject matter due to a communication from Senator Albert Chie’s to unbundle activities of the LPRC to enhance the country’s energy sector.
Plenary, the Senate’s highest decision-making body, received the proposal during its session on Tuesday, January 21, 2025.
Senator Chie pointed out that the LPRC currently holds overlapping roles in Liberia’s downstream petroleum sector, functioning as a policymaker, regulator, and commercial operator. He described this as an “institutional conflict” that undermines fair competition, private sector growth, and efficient energy delivery.
“For example, how can the LPRC license importers of petroleum products while being an importer itself? How can it set prices for petroleum products through its monthly circular when it also operates as a commercial importer?” Senator Chie questioned in his communication to the Senate.
He argued that such conflicts create an uneven playing field, hinder revenue generation for the Government of Liberia (GOL), and limit availability of high-quality, affordable energy services.
Chie emphasized that international best practices require distinct institutions to manage policy setting, regulatory oversight, and commercial operations within the energy sector. He noted that the Liberian government has made progress in unbundling roles in the power and upstream petroleum sectors but has yet to implement similar reforms in the downstream petroleum sector.
He referenced the 2009 National Energy Policy (NEP), which recommended amending existing laws to unbundle the roles of the Liberia Electricity Corporation (LEC), the National Oil Company of Liberia (NOCAL), and the LPRC.
“While reforms in the power and upstream petroleum sectors have taken place, the downstream petroleum sector remains unchanged, with the LPRC maintaining its overlapping functions as both referee and player,” he argued.
To address these challenges, he proposed that the Senate Plenary mandate its relevant committees to lead a national discourse, including public hearings, to review and amend the LPRC’s 1978 Corporate Charter and the 1989 Act granting it exclusive rights for the importation, sale, and distribution of petroleum products in Liberia.
He called for the establishment of separate entities to manage LPRC’s responsibilities which include regulatory functions that could be assigned to an independent body or an existing entity other than the LPRC, and that policy-setting functions should be explicitly vested in the Ministry of Mines and Energy or another government agency, so that the LPRC can focus solely on commercial operations.
Alternatively, Senator Chie suggested that the LPRC could be restructured as a regulatory authority, divested of its commercial functions, in line with international best practices and the NEP.
“We look forward to an unbundled and efficient downstream petroleum sector that aligns with international standards and the National Energy Policy of 2009”, he concluded.
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