Fuel Price Could Be Reduced to N70 Per Litre... See Details

A lawmaker of the green chamber is pursuing a strong call for the reduction in the price of fuel to ameliorate the current hardship in the country.

 

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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, Vanguard reports.

 

This followed the adoption of a motion sponsored by Rep. Abubaker 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.

“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."

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No Plan To Increase Fuel Price- Petroleum Stakeholders

Major stakeholders in the petroleum downstream sub-sector have dismissed the report of an imminent increase in the price of fuel.

This is contained in a statement jointly signed by Mrs Sotonye Iyoyo, acting Executive Secretary of PPPRA, Mr Obafemi Olawore, Executive Secretary, MOMAN and Mr Olufemi Adewole, Executive Secretary DAPPMA.

The statement said in Abuja on Wednesday that the envisaged increase in fuel was unfounded and uncalled for.

It said that a decision not to increase the price of fuel was reached at a meeting of the major stakeholders presided over by the Minister of State for Petroleum Resources, Dr Ibe Kachikwu.

The statement said the Group Managing Director of (NNPC), acting Executive Secretary of Petroleum Products Pricing Regulatory Agency (PPPRA), and acting Executive Secretary of Petroleum Equalisation Fund (PEF) were at the meeting.

Other stakeholders present were the Executive Secretary, Major Oil Marketers Association of Nigeria (MOMAN), the Executive Secretary, Depot and Petroleum Products Marketers Association (DAPPMA), and chief executives of oil marketing companies, it said.
It said that the meeting reviewed the state of the downstream sector, especially as it was related to products supply, distribution, pricing and Forex sourcing.

According to the statement, the meeting also reviews the recent concerns expressed at certain quarters on the sustainability of the current fuel price.
It said that after exhaustive deliberations, stakeholders present were in the agreement that the speculations of an imminent upward price review of petrol were unfounded.

The position of the stakeholders was based on the current market fundamentals of PPPRA pricing template for petrol as the market was operating within the existing price of N135 and N145 per litre.

According to the statement, the claim is therefore both unfounded and deceptive, as there is no basis for pricing speculations as being circulated in the last few days.
It said that the PPPRA used the opportunity to assure all stakeholders of uninterrupted products supply and distribution.

The statement said that Kachikwu had assured all Nigerians of Federal Government’s continued commitment to the welfare and well being of the people.

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