Monrovia, Liberia – March 31, 2025: In a move to bolster government revenue in the face of reduced international aid, the Liberian government has announced the reinstatement of surcharges on petroleum products and storage, effective May 1, 2025. This decision follows extensive consultations between key government entities, including the Ministries of Finance and Development Planning (MFDP) and Commerce & Industry (MoCi), as well as the Liberia Petroleum Refining Company (LPRC) and the Liberia Revenue Authority (LRA).
The reinstated levies include a twenty-cent ($0.20) surcharge on each gallon of petroleum products and an additional five cents ($0.05) per gallon for storage. According to a joint statement released by the Ministry of Commerce & Industry and the LPRC, this measure is a direct response to a significant and unexpected decrease in Official Development Assistance (ODA) from some of Liberia’s international partners.
The statement highlighted the detrimental impact of this sudden reduction in ODA, noting that it has severely affected critical interventions across vital sectors such as health, education, and agriculture. Faced with this fiscal challenge, the government has implemented a series of expenditure adjustments and revenue enhancement strategies to ensure the continued provision of essential public services.
“This action is, therefore, a part of a package of expenditure streamlining revenue enhancing measures aimed at weathering the current situation and ensuring government’s continued support for essential services,” the joint statement emphasized.
The government acknowledges the potential impact of these surcharges on the public and is appealing for understanding and cooperation during this period. “The understanding and cooperation of the public are greatly solicited and highly appreciated on this critical matter as we work together to strengthen our nation’s economic development agenda,” the statement concluded.
The decision to reinstate these surcharges underscores the financial pressures Liberia is currently facing due to shifts in international development funding. The collaborative effort between various government ministries and agencies signals a unified approach to navigating these economic headwinds and maintaining essential services for the Liberians. The coming months will be crucial in assessing the effectiveness of these measures and their broader impact on the nation’s economy.
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