-As Electricity Supply Reduces
By Jerromie S. Walters
Monrovia, Liberia – The Ministry of Commerce and Industry, in collaboration with the Liberia Petroleum Refining Company (LPRC), has announced a new price ceiling for petroleum products, including fuel oil and gasoline, effective February 2025. According to the government, the adjustment, which reflects a five-cent increase per gallon, aims to stabilize the local market and ensure fair pricing for consumers and businesses alike.
The increment in the price of petroleum products comes a day after the Liberia Electricity Corporation (LEC) announced a reduction in power supply due to production challenges and critical maintenance activities by its primary electricity supplier, Compagnie Ivoirienne d’Électricité (CIE).
The new petroleum pricing structure, outlined in the Ministry’s February 6, 2025, Petroleum Products Monthly Price Circular, sets the wholesale selling price for gasoline (PMS) at US$3.68 per gallon, with the retail pump price rising to US$3.96 (or LD 790.00). Similarly, fuel oil (AGO) will now have a wholesale selling price of US$3.98 per gallon, with the retail pump price set at US$4.26 (or LD 850.00). These prices are based on the Central Bank of Liberia’s (CBL) February 3, 2025, exchange rate of LD 198.82 to US$1.
The Ministry emphasized that the price adjustments were made after careful consideration and consultation with stakeholders to balance market dynamics and ensure the sustainability of petroleum product supplies in Liberia. The Inspectorate Team of the Ministry of Commerce and Industry will closely monitor compliance with the new price ceilings to prevent arbitrary price hikes and protect consumers from exploitation.
In addition to enforcing the price ceilings, the Ministry has pledged to oversee the implementation of the circular to ensure fair competition among importers and prevent undercutting practices that could destabilize the market.
The Ministry urged all petroleum importers, distributors, and retailers to adhere strictly to the new pricing guidelines. Violations of the approved price ceilings will be met with appropriate regulatory action to safeguard the interests of consumers and maintain market stability.
CIE Reduces Electricity Supply by 85%
The Liberia Electricity Corporation (LEC) on Wednesday, February 5, 2025, announced a significant reduction in power supply due to production challenges and critical maintenance activities by its primary electricity supplier, Compagnie Ivoirienne d’Électricité (CIE). The Ivorian energy provider has slashed its power supply to Liberia by 85%, reducing the available electricity from 50MW to a mere 7.5MW. This drastic cut is expected to cause widespread power outages across Monrovia and surrounding areas, disrupting daily life and business operations.
Birth of the Crisis
Under the Power Purchase Agreement, CIE has been a key supplier of electricity to Liberia. However, the company is currently grappling with operational challenges, including production issues and urgent maintenance needs, which have necessitated a sharp reduction in power exports. The LEC has expressed regret over the situation, emphasizing that the adjustment is critical for CIE to ensure the long-term stability and efficiency of its operations.
Impact on Liberia
The reduction in power supply comes at a challenging time for Liberia, as the country’s primary hydropower facility, the Mt. Coffee Hydropower Plant, is also struggling to generate sufficient electricity due to declining water levels. This dual challenge has left the LEC with limited options to meet the energy demands of its customers.
Residents and businesses in Monrovia and nearby regions have already started expressing dismay over the situation as the experience of prolonged and unscheduled power outages exacerbates existing challenges in a country already grappling with energy insecurity.
