The Government of Liberia through the Liberia Petroleum Refining Company (LPRC) and the Ministry of Commerce & Industry has announced an increase in the price of diesel (fuel oil) on the Liberian Market.
According to a petroleum price circular issued by the government, the retail pump price for a gallon of fuel oil has increased from US$2.68 to US$2.98 or its Liberian dollar equivalent of LD$275 (which represents a 30 United States cent increment), while the retail pump price for a gallon of gasoline remains at
US$2.96 or its Liberian dollar equivalent of 270. The prices in Liberian dollars were calculated using the Central Bank’s approved exchange rate of 1USD to LRD$92.00
The new petroleum price ceiling circular issued by LPRC and the Ministry of Commerce & Industry, took effect as of Friday, May 27, 2016. The decision to increase the price of diesel is a result of a shift in the perimeter that is usually used to determine the price of the product in the country.
The release thanked all stakeholders in the Downstream Sector of the Petroleum Industry for their commitment in adhering to the price adjustment formula.
Meanwhile, the circular warned that the Ministry of Commerce inspectorate unit will closely monitor the approved ceiling prices to avoid the arbitrary hike in the pump prices of gasoline and fuel on the local market. The circular further warned that the Ministry of Commerce will also be closely monitoring the effectiveness of the price circular to ensure that importers do not undercut fellow competitors on the market.
In a related development, the LPRC is encouraging consumers to continue their level of understanding; as external factors dictate the cost of these products on the Liberian Market and the sub-region.
Prices of petroleum products in Liberia, as reflected in the table (pictured), are still the lowest in the Sub-region. This is largely due to lower levy imposed on petroleum products in the country as compared to other countries.