Rule of Law Caucus Weighs In on LPRC Policy -Describes New Terminal Storage Pricing ‘Dangerous Overreach’

MONROVIA – The management of the Liberia Petroleum Refinery Company (LPRC) continues to suffer public censures over its new price-setting for terminal storage in the country, a move many say is anti-people intended to economically embolden bigwigs within the ruling Unity Party. Weighing in on the issue also is the Rule of Law Caucus at the House of Representative, formerly Minority Bloc of the House. In a statement, the Caucus said the action by the LPRC reveals unilateral and dangerous overreach. The Analyst reports.    

A group of lawmakers in the House of Representatives, tagged Rule of Law Caucus has strongly reacted to new price regime put into place by the Liberia Petroleum Company for terminal storage.

In a statement signed by the Chairman of the group, Jacob Cheategba Debee, II, the Caucus said the action reveals a overreach by the LPRC—one that challenges both the legal framework established by the 1989 Act and the fiscal governance mechanisms embodied in the PFM Act of 2009 – 2019 PFM Law and Regulations.

As lawmakers, guardians of the public purse, and defenders of national interest, the Caucus said, “we must not allow such impulsive and unilateral actions to go unchallenged”.

“Let this statement serve as a firm reminder that no government entity is above the law, especially when public finances and national interests are at stake,” the Rule of Law Caucus stressed, adding, “We will uphold transparency, safeguard revenue streams, and preserve democratic oversight—today and always.”

The group said LPRC’s recent unilateral decision to reduce terminal fees and to arbitrarily set prices for terminal storage of petroleum products—action flying in the face of statutory constraints—undermines legislative oversight, and threatens both fiscal accountability and the public interest.

Casting light on the 1989 Establishment Act, the Act of the Legislature dated July 31, 1989, the group of lawmakers say, grants the LPRC “exclusive rights for the importation, sale, and distribution of petroleum and petroleum products within the Republic of Liberia—particularly the importation of all petroleum products shall be the sole and exclusive right of LPRC except with the written consent of the Liberia Petroleum Refinery Company, duly approved by the President of Liberia”.

However, the Rule of Law Caucus quickly stated that while this exclusivity is explicit regarding importation, it does not extend to authority over fee-setting or price fixation, which are revenue-generating functions critical to national finance and remain subject to legislative scrutiny and approval.

said the group further: “The Public Financial Management (PFM) Act, 2009 (and 2019 amended/Restated Law); the PFM Act governs all matters related to the management of public finances, including revenue collection and accounting across government agencies…including State-Owned Enterprises (SOEs) such as LPRC.”

“It requires that autonomous agencies and SOEs submit their budgets to the Ministry of Finance and Development Planning (MFDP) and, by extension, to the Legislature. Adhere to principles of Accountability, transparency, and budgetary discipline. The 2019 Amended/Restated PFM Law and its Regulations reinforce these principles and further clarify the accountability mechanisms and separation of fiscal oversight powers.”

The group indicated that by unilaterally reducing terminal fees and setting storage prices, the LPRC has effectively bypassed freely legislated revenue frameworks—an act inconsistent with the PFM Act’s mandate that all revenue-raising measures must be defined in the national budget and harmonize with the MFDP and Legislature.

The Rule of Caucus stressed that the decision strips away public oversight and disguises the true fiscal impact of LPRC’s operations.

“Without proper budgeting and reporting, how can we verify whether this benefits the people or instead deprives the State of critical receipts?” quipped the lawmakers, which further said “if left unchecked, such an intrusion undermines the rule of law and encourages other SOEs to act beyond their legal jurisdictions—risking systemic erosion of financial governance in Liberia.”

The statement called on the Board and Management of LPRC to immediately suspend what it called “these unlawful measures and provide a detailed account to the Legislature, highlighting the rationale, projected fiscal implications, and legal justification for the decision.”

It states that the Legislature, through its Committees on Lands, Mines, Energy, Natural Resources & Environment, and Public Accounts, should launch a full-scale investigation into the legality, fiscal impact, and policy consequences of LPRC’s actions.

The Rule of Law Caucus also called upon the Ministry of Finance and Development Planning, under the PFM Law, to formally review any unauthorized fee or price revisions and work to reintegrate these into a transparent, legislative-approved budgeting process.

“The Executive must guard against executive agencies or SOEs operating beyond their statutory limits, and ensure that all financial decisions remain under appropriate public scrutiny,” said the caucus.

“Let this statement serve as a firm reminder that no government entity is above the law, especially when public finances and national interests are at stake. We will uphold transparency, safeguard revenue streams, and preserve democratic oversight—today and always.”