Reps want petrol sold at N70 per litre


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The House of Representatives on Tuesday
urged the Petroleum Products Prices
Regulatory Agency (PPPRA) to review the
current price template for Premium Motor
Spirit (PMS) with a view to reducing the
price to N70.

This followed the adoption of a motion
sponsored by Rep. Abubakar Fulata titled
“Urgent Need to Review the Petroleum Price
Template”.
Moving the motion, Fulata expressed dismay
over the circulating rumour of a possible
hike in the price of petrol in the
country.Although the rumour was denied by
the Federal Ministry of Petroleum Resources,
Fulata said it was coming at a time when the
nation is going through difficult times.

According to him, the hard times are
occasioned by dwindling revenues, high
inflation rate, unemployment and general fall
in the standard of living of many Nigerians.
The lawmaker noted that the current
template for the price of PMS could be
reviewed downwards without affecting the
profit margin of marketers and transporters.
The review would also contribute to reducing
the current inflationary trend in the
economy.

“I am aware that the current cost of
freighting PMS stands at N109.1, Lightering
expenses N4.56, Nigeria Ports Authority
charges N0.84, NIMASA charges N0.22,
Financing N2.51 and Jetty put charges at
N0.60.
“Storage charges N2.00, retailers margin
N6.00, transport allowance N3.36, dealers
margin N2.36, bridging fund N6.20 and
marine transport average put at N0.15
bringing the total cost to N137.81,” he said.
He further informed the House that the
landing cost of PMS remained at N119.74,
while the distribution cost and margins of
marketers stood at N18.37.


“Thus, the total of both the landing and
distribution costs is N138.11, while
marketers are allowed to sell the product
within the range of N140 and N145 per litre.
Fulata further noted that over 90 per cent of
the current price of PMS in the country is
accounted for by transport related charges at
N124.34 out of N138.11.
According to him, foreign vessels charge
higher for lifting the PMS because Nigerian
carriers which were supposed to lift 50 per
cent of the products lack the capacity to do
so.

He faulted the NPA’s inability to dredge the
ports despite collecting N0.84 for every litre
of petrol thereby costing Nigerian users the
sum of N4.56 for every litre of petrol they
buy.
“Bridging is supposed to be an annual event
only when refineries are carrying out their
turn around maintenance which should not
exceed three months.
“However, due to the fact that pipelines
linking the various depots have been
vandalised or in a state of disrepair, bridging
has remained a permanent feature of the oil
industry in Nigeria,’’ he said.
He said that if the pipelines linking the
various depots and refineries could be fixed
and secured, the bridging fund could be
reduced to N2.00 per litre instead of the
current N6.20.
“Also a realistic template would bring down
the price of petrol to N70.04,” he added.
The House therefore urged the NPA to
dredge all harbours within a period of one
year to enable ship dock in them.
House also set up an ad-hoc committee to
interface with the Federal Ministry of
Petroleum Resources on the review of the
price of PMS and such related matters and
report back within weeks for further
legislative action 



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