Monrovia – Grand Kru County Senator Albert Chie has submitted a proposal to the Liberian Senate Plenary, urging a review and unbundling of the responsibilities of the Liberia Petroleum Refining Company (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.
Institutional Conflict Highlighted
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 the availability of high-quality, affordable energy services.
International Best Practices and Recommendations
Senator 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,” Senator Chie stated.
Proposed Legislative Actions
To address these challenges, Senator Chie 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 could be assigned to an independent body or an existing entity other than the LPRC, policy-setting functions should be explicitly vested in the Ministry of Mines and Energy or another government agency. The LPRC should 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.
Next Steps
The Senate has forwarded Senator Chie’s proposal to the Committees on Public Corporations, Hydrocarbon and Environment, and Judiciary for review. These committees are expected to report their findings and recommendations to the Plenary in the shortest possible time.
Senator Chie concluded, “We look forward to an unbundled and efficient downstream petroleum sector that aligns with international standards and the National Energy Policy of 2009.”
