The Liberia Petroleum Refining Company (LPRC) issues this statement to provide a clear, factual, and transparent explanation of Liberia’s petroleum revenue collection framework following recent public assertions suggesting that the Company collects and mismanages Government taxes.
LPRC categorically and unequivocally states that it does not collect Government taxes.
Under Liberia’s established revenue administration system, institutional mandates are clearly defined and legally separated. LPRC collects only approved statutory petroleum service and operational fees in accordance with the national petroleum pricing structure. The Liberia Revenue Authority (LRA) is solely responsible for the assessment, determination, and collection of all Government taxes, including customs duties, excise taxes, and other statutory levies.
The Petroleum Importation and Revenue Collection Process
To enhance public understanding, the petroleum importation and revenue framework operates as follows.
Step 1: Laycan Request by Licensed Importers
Licensed importers initiate the importation process by submitting a Laycan (loading or unloading window) request to LPRC specifying the product type, whether PMS (gasoline), AGO (diesel), or Jet Fuel, the volume in Metric Tons, and the expected arrival timeline.
Step 2: Reception, Discharge and Outturn Verification
Upon approval and vessel arrival, the product is discharged into LPRC’s Product Storage Terminal (PST). An Outturn Report is generated to reconcile the quantity shipped against the actual quantity received. Volumes are recorded in both Metric Tons and U.S. Gallons to ensure accounting accuracy and transparency.
Step 3: Allocation and Transfer Order
The importer initiates stock movement by issuing a Transfer Order specifying the authorized distributor, the allocated quantity, and the product type.
Assessment of LPRC Statutory Service Fees. Upon discharge at approved terminals, LPRC assesses operational service fees which may include storage, vessel discharge, laboratory testing and quality control, inspectorate services, and handling and maintenance charges. These charges are strictly service-based operational fees and do not constitute taxes.
Step 4: Assessment and Collection of Government Taxes
All applicable taxes and statutory levies are assessed and collected directly by the Liberia Revenue Authority in accordance with national revenue laws. Importers remit tax payments directly to the LRA. The LRA maintains oversight authority at the PST, including operational controls that prevent product lifting where required Government taxes remain unpaid. Even where all LPRC service fees have been settled, lifting cannot occur unless Government taxes have been fully paid to the LRA. The LRA maintains sole jurisdiction over the determination and collection of taxes, duties, and levies. LPRC acts strictly as the terminal operator and does not collect Government of Liberia taxes under any circumstance.
Step 5: Payment of LPRC Fees
Before any product is lifted from the PST, the importer must settle all applicable LPRC service and storage fees. Payment is based solely on the volume authorized for lifting.
Step 6: Distribution and Delivery Orders. The importer or distributor issues a Delivery Order against the approved Transfer Order. The Delivery Order specifies the quantity, product type, and destination retailer or service station and authorizes the physical lifting of the product.
Oversight and Financial Accountability
All fees collected by LPRC are properly receipted, deposited into designated accounts, and subject to established internal financial controls. These revenues are audited in accordance with Public Financial Management regulations and overseen by the Board of Directors and relevant Government oversight institutions. LPRC operates within a structured governance and compliance framework consistent with national laws and international best practices.
Response to Recent Allegations
LPRC has taken note of misleading statements circulating on social media alleging that the Company collects and mismanages Government taxes. These allegations are baseless, misleading, and unsupported by factual evidence. LPRC does not collect Government taxes and therefore cannot mismanage tax revenues. Any suggestion to the contrary reflects a fundamental misunderstanding of the clearly defined institutional responsibilities within Liberia’s petroleum revenue administration system.
Commitment to Transparency and Institutional Integrity
Management remains fully committed to transparency, accountability, compliance with national laws, and strengthening governance in Liberia’s petroleum sector. The integrity of Liberia’s downstream petroleum framework is vital to national economic stability. Public discourse on such matters must be guided by facts, institutional clarity, and responsible engagement. LPRC encourages media institutions, civil society organizations, and members of the public to seek clarification from the appropriate authorities regarding petroleum pricing, statutory service fees, and tax collection procedures.
LPRC: “Keeping the Wheels of Industry Turning” www.lprclib.com
