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.


m.guardian.ng/news/reps-want-petrol-sold-at-n70-per-litre/

Oya. Implement

After all the "subsidy is a scam"arguments? After APC scammed Nigerian of taking us to Eldorado? After NNPC is saying PMS is no more feasible at #145? Where is that Tam David-West & Fashola with their illusionary price of what petrol price should be under this clueless regime Now these fellas that have been feeding fat @ our expense are again telling us that petrol should sell at #70.Government of back & forth.Nigeria deserves it leaders.

PLEASE CAN SOMEBODY EXPLAIN IN A LAYMAN TERM. THANKS.

WE LEARN EVERYDAY

i smell lies

Demon Buhari will never agree

ol

The one and only positive motion that ever Came from the Reps. I hope they are sincere about it this time.

When we had subsidy in 2012-2015 yet bought PMS @ #97, we called him clueless.....
With d same subsidy....pls how much is a litter of PMS between June 2015 & Nov 2016?

PaulIdu:
Demon Buhari will never agree

Dem in Buhari did not employ 200,000 youths

Or fight corruption

Or end boko haram insurgency

Warra shane

Paperwhite:
After all the "subsidy is a scam"arguments? After APC scammed Nigerian of taking us to Eldorado? After NNPC is saying PMS is no more feasible at #145? Where is that Tam David-West & Fashola with their illusionary price of what petrol price should be under this clueless regime Now these fellas that have been feeding fat @ our expense are again telling us that petrol should sell at #70.Government of back & forth.Nigeria deserves it leaders.

It really sucks to be a Nigerian right now!