In response to sudden cuts in international aid, the Liberian government has announced the reinstatement of a twenty-cent ($0.20) surcharge on petroleum products, along with an additional five-cent ($0.05) storage fee, effective May 1, 2025. The decision follows extensive consultations between key government agencies, including the Ministries of Finance and Development Planning, Commerce and Industry, the Liberia Petroleum Refining Company (LPRC), and the Liberia Revenue Authority (LRA).
The move comes after several of Liberia’s development partners unexpectedly reduced Official Development Assistance (ODA), creating funding gaps in critical sectors such as healthcare, education, and agriculture. These cuts have strained the government’s ability to maintain vital programs, prompting officials to seek alternative revenue sources.
“This was not an easy decision, but it is a necessary step to ensure that essential services remain funded,” a joint statement from the Ministry of Commerce & Industry and the LPRC read. “We understand the burden this may place on citizens, but these measures are crucial to stabilizing our economy during this challenging period.”
The reintroduced surcharge is part of a broader strategy to strengthen domestic revenue collection while minimizing disruptions to public services. Officials emphasized that the funds will help cushion the impact of reduced foreign aid, allowing the government to continue supporting key initiatives.
Liberians have been urged to bear with the temporary measure as the government explores long-term solutions to diversify revenue streams and reduce reliance on external assistance.
Recognizing the potential financial strain on households and businesses, authorities have appealed for public cooperation. “We are all in this together,” the statement noted. “Your patience and understanding will help us navigate these challenges and keep our nation on the path to sustainable growth.”
As the May 1 implementation date approaches, further details on the surcharge’s administration and its impact on fuel pricing are expected to be released. For now, the government reassures citizens that every effort is being made to ensure transparency and accountability in the use of these additional funds.
