-Who’s benefiting from the reduction?
By Jerronie S. Walters
Amid doubts surrounding the reported reduction in the prices of petroleum products on the Liberian market, the Management of the Liberia Petroleum Refining Company (LPRC)and the Ministry of Commerce (MoC), over the weekend, informed the public that there has been a reduction in the prices of petroleum products.
Following the disclosure earlier by authorities of the Liberia Petroleum Refining Company (LPRC)and the Ministry of Commerce (MoC), Liberians expressed doubts, because they said it was earlier sold for $LRD750 but the government says it has reduced it to $LRD850.
A social media user wrote: “Na me finish puttin my regular 780 together for my 3 gallons gasoline just to go hear the government reduced the price to 850.” A lot of Liberians have defaulted with the government’s claim about a reduction in the prices of petroleum products on the Liberian market.
But according to the government, the price of Gasoline which was US$ 4.47 is now US$ 4.43/ LRD 850.00 while the price of Diesel which was US$ 5.23/ is now US$ 5.01/ LRD 960.00.
The Management of LPRC and MoC say they will closely monitor the approved ceiling prices to avoid arbitrary hikes in the pump prices of petroleum products.
“The circular further warned that the LPRC and the MoC will also closely monitor the effectiveness of price circulars to ensure that importers do not undercut fellow competitors on the market.”
The Liberia Petroleum Refining Company (LPRC) is a State-owned entity, wholly owned by the Government of Liberia (GOL), with the mandate to procure and supply quality petroleum and petroleum-related products to the Liberian market.
The LPRC is certainly a business entity engaged in profit-making activities. It has every power that a corporation now or hereafter organized under the Liberian Business Corporation Act may have.
The idea of creating an oil company in Liberia was conceived when it became clear that the government was spending an enormous amount of its foreign earnings on the importation of petroleum and petroleum products into the country.
Therefore in the mid-1960s, construction work began for oil refining facilities under the auspices of the Liberia Refining Company (LRC). Two American Firms, Sun-Oil Company and Dynelectron Corporation were in control of the financial and operational aspects of the company.
The Government of Liberia provided the managerial staff with Hon. Cletus Wotorson as its first Managing Director. In the mid 1970’s, the facilities of the LPRC were gutted by fire and the American firms pulled out.
Thus, on August 31, 1978, following the purchase by the Liberian Government of the assets of the then Liberia Refining Company (LRC), the company was changed to the Liberia Petroleum Refining Company (LPRC). Since August 31, 1978, the LPRC has been supplying the country with quality petroleum products as the wheels of industry keep turning.
