The Government of Liberia is set to generate more than $16.6 million annually from storage fees on petroleum products, according to findings from a recent Senate investigation. The investigation was conducted by a joint Senate committee comprising the Committees on Ways and Means, Public Corporations, Judiciary, and Hydrocarbon. It was chaired by Bomi County Senator Edwin Snowe and initiated after a formal complaint was filed by Margibi County Senator Emmanuel Nuquay regarding concerns over petroleum pricing and storage practices.
According to Senator Moye, the projected $16.6 million in revenue will come from a new fee structure that includes a nine-cent charge per gallon on petroleum products stored in the country. He revealed that a significant portion of these fees, which in the past had been paid to private actors in the petroleum industry under what he described as “blanket storage fees,” will now be redirected to the national treasury.
These fees were being charged without the delivery of the corresponding services, a practice the investigation deemed exploitative and economically harmful to consumers. Senator Moye noted that of the nine cents, five cents will now go directly to government revenue. In addition, two cents built into the pump price is projected to yield at least four million dollars annually. This additional revenue will be used to maintain road construction equipment, commonly referred to as “yellow machines,” and to fund social programs that have been under pressure since the withdrawal of support from the United States Agency for International Development (USAID).
As part of its work, the Senate's joint committee extended the scope of its investigation beyond Liberia, reviewing practices in neighboring countries such as Sierra Leone. Expert consultations revealed that Liberia had been losing significant revenue due to weak regulation and oversight, with major petroleum companies benefiting disproportionately from unregulated storage fees. Senator Moye stressed that it is unfair for Liberian consumers to bear the burden of petroleum importation costs, while private companies profit without accountability. He stated that such costs must be redistributed in a way that benefits the population, rather than enriching a select few.
The investigation also projected petroleum import volumes for the final quarter of 2025, from September to December 25. It is estimated that Liberia will import approximately 50.9 million gallons of petroleum products, including AGO, Jet A-1, and PMS. Based on this volume, the two-cent fee alone is expected to generate about $1.9 million, which will be directed toward the Ministry of Health to support the provision of essential drugs. During that same period, the five-cent fee is expected to raise around $4.5 million, which will support county-level road maintenance and the operation of road-building machinery. Senator Moye explained that the funds raised from these fees will also help alleviate the strain on Liberia’s Road Fund, which is currently allocated for other infrastructure priorities.
He stated that before the new equipment even arrives in the country, over $4.5 million will already be available for its maintenance and operation. This, he said, marks a major milestone in ensuring that development funding is available and efficiently managed. The original Senate recommendation had proposed a 10-cent storage fee, but this was later revised to nine cents following consultation with the Executive Branch. President Joseph N. Boakai has officially endorsed the Senate’s recommendation. Senator Moye praised the President for what he described as a courageous stance, especially in the face of resistance from powerful interests within the petroleum sector.
He concluded by emphasizing that this new revenue strategy represents a significant step forward in making Liberia’s petroleum industry more accountable and more beneficial to its citizens. He expressed satisfaction that these reforms would have a direct and meaningful impact on national development and public welfare.
Author: Zac T. Sherman
