Members of the Petroleum Terminal Owners Association of Liberia have sharply criticized the Senate's recent recommendation to slash storage fees, warning that the policy could bankrupt private operators, threaten hundreds of millions of dollars in investments, and destabilize the nation's petroleum supply chain.
Speaking on OKFM's Morning Rush program on Thursday, Foday Massaquoi and Robert R. Wherboe, Jr. argued that the government's new petroleum pricing circular, meant to bring relief at the pump, is both economically and legally flawed.
"Firstly, who is recommending the reduction of the storage fee? It is the Senate. That is an inherent fundamental contradiction," Massaquoi said. "The Senate is a political house. According to the law that created the LPRC in 1989, it is the company--not the Senate--that should regulate petroleum importation and storage."
Massaquoi accused lawmakers of politicizing what should have been a strictly economic decision.
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"This is more of an economic and business issue than a political issue. You don't just wake up one morning and slash fees that companies rely on to pay international loans, service debts, and maintain operations. That is not sustainable."
He noted that the companies affected have 20-plus-year agreements with the government, under which the storage fee was set at 35 cents per liter. The Senate recommendation to reduce the fee to 5 cents represents an 86% cut, a move that Massaquoi says "ignores decades of legal agreements and financial obligations."
"Yes, the LPRC is violating the agreement. To reduce it to 5 cents--without consultation--is unjust and could bankrupt the sector," he said.
Wherboe warned that the policy could have catastrophic effects on local businesses and employees.
"This policy will definitely jeopardize and put Liberian-owned businesses into an unsustainable position that will lead them to go out of the market and lay off people," he said. "Thousands of Liberians work there as drivers, in maintenance, and in administration. Some of these institutions spend over US$100,000 monthly on salaries alone. Bringing such an overnight policy, without consultation, is unfair and dangerous."
He stressed that these investments were financed through international capital debt, with operators relying on fee revenues to service loans and maintain operations.
"These companies leveraged their credibility to secure funding and build storage infrastructure. You cannot just remove their ability to recover costs overnight," Wherboe said.
The terminal owners also raised concerns about potential conflicts of interest involving Senator Prince Moye, who has reportedly championed the fee reduction. Massaquoi described the situation as "nepotism and political interference."
"Senator Moye's wife sits on the LPRC board. The Senate cannot be making political recommendations on a matter that should be strictly economic," Massaquoi said.
The leaders criticized the Senate for failing to consult the affected terminal operators, who are the key stakeholders.
"You cannot make a decision in the absence of the people who will be directly affected," Wherboe said. "The Senate should have invited the terminal owners to the table. Instead, they rushed a recommendation that undermined the entire business environment."
Massaquoi added that proper consultation could have prevented the current impasse:
"Before any reduction, both the government and the importers should calculate operating costs, expenses, and revenue to determine a fair margin. That was never done. This is why the policy is unfair and unworkable."
Both Massaquoi and Wherboe emphasized that the fee reduction will not translate into lower pump prices.
"Prices of petroleum products are not set by the government of Liberia; they are set internationally. The government only regulates, it does not fix prices," Massaquoi explained. "So, cutting storage fees will not make fuel cheaper--it will only destroy local businesses."
Wherboe added that misinformation and political propaganda have contributed to public confusion.
"People think slashing the fee will automatically lower fuel prices. That is a misunderstanding of how the market works," he said.
The Association made it clear that it is not opposed to reducing fees but insists that it be done fairly and in consultation with operators.
"We are not against the reduction of fees. But it must be done in a way that benefits both the government and terminal operators. You calculate the operating costs, the revenue, and the expenses--then you find a fair margin," Massaquoi said.
Wherboe stressed that failure to engage stakeholders threatens investor confidence.
"Already, for seven to ten years, there has been almost no foreign direct investment in Liberia. Policies like this will only worsen that situation," he said.
The terminal owners warned that if such policies continue unchecked, other sectors could be affected.
"Today it is the petroleum terminals. Tomorrow it could be rice importers, or even radio stations. Any independent business could be targeted. That is why we are speaking out," Wherboe said.
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Massaquoi concluded with a strong rebuke of the Senate:
"The Senate must do the honorable thing. Stop calculating only revenues without considering expenses. If this money truly benefits the Liberian people, let it go into a reform fund for health or education--not into LPRC's account. Otherwise, this is the highest form of wickedness."
With over 300 million dollars in private investments potentially at risk, the Petroleum Terminal Owners Association is calling on President Joseph Boakai and the government to intervene before irreversible damage occurs. They have urged for a national dialogue that includes terminal operators, government regulators, and lawmakers to ensure that any reduction in fees is fair, transparent, and sustainable.
"We are advocates for the marginalized and for Liberians who depend on these jobs. This is not about politics--it is about survival, economic fairness, and national interest," Massaquoi said.
The controversy highlights the delicate balance between regulation, political influence, and private sector investment in Liberia's petroleum industry. Analysts say the outcome of this dispute could have far-reaching effects on both the sector and the broader economy if not addressed urgently.
