Reps advocate urgent review of petroleum price, propose N70/litre

Lawan Hamidu, Abuja

Amid speculations that there might be a hike in the price of petrol in the country, the House of Representatives has urged the Nigerian government to review the current petroleum price template to reflect current realities in the country.

The House, in a motion unanimously adopted, expressed concern over un-necessary charges in the template that could bring down the price of petroleum products.

Leading the debate on the motion, Abubakar Hassan Fulata from Jigawa State, said over ninety percent of current price in the country is accounted for by transport related charges that can be remove through effective and efficient utilization of public facilities in the oil and gas sector.

“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,” Fulata said.

He further said “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.”

“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,” he added.

He criticized the Nigerian Ports Authority, NPA for inability to dredge the ports, despite collecting N0.84 for every litre of fuel – an action that cost consumers 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.

Also a realistic template would bring down the price of petrol to N70.04,″ Fulata added.

The House urged the Petroleum Products Pricing Regulatory Agrncy, PPPRA, and the Ministry of Petroleum Resources to review the current price regime for the benefit of citizens.