Liberia announced a reduction in the prices of gasoline and diesel fuel, noting that the retail pump price for a gallon of gasoline dropped from US$3.14 to US$3.05 and the same for a gallon of diesel declined from US$3.11 to US$3.01, with effect from 5 July 2017
The joint statement issued by the Ministry of Commerce and Liberia Petroleum Refining Company (LPRC) said that the prices in Liberian dollars were calculated using the approved exchange rate of the Central Bank of Liberia.
The statement described that the decision to drop the price of gasoline and diesel fuel came as a result of a shift in the perimeter that was often used to determine the prices of the petroleum products in Liberia.
The comparative price analysis of petroleum products in selected countries in the sub-region Africa indicated that the prices of petroleum products in Liberia are among the lowest in the sub-region.
Commenting on the price cut, the circular also warned that the inspectorate of the Ministry of Commerce will closely monitor the approved ceiling prices in order to avoid the arbitrary hike in the pump prices of gasoline and fuel in the local market.
The circular further added that the Ministry of Commerce will also monitor the effectiveness of the price circular, aiming to ensure that the importers do not undercut fellow competitors on the market.
In the release, the Liberian government as well as LPRC thanked the stakeholders in downstream sector of the petroleum industry for their commitment in adhering to the price adjustment formula.
The LPRC is a state-run oil and gas company which is responsible for refining, storage, distribution and supply of petroleum products to the domestic market.
Liberia imports most of the petroleum products from the neighbouring countries. According to the Central Bank of Liberia, the country imported petroleum products worth US$323.8mn in 2016, representing about 27 per cent of all import payments.
