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Reps Propose N70 Per Litre For Petrol

petrol-pump-price

By Modupe Gbadeyanka

The House of Representatives has called for a downward review of the price of premium motor spirit (PMS) popularly called petrol.

In a motion sponsored on Tuesday by Mr Abubakar Hassan Fulata, the House appealed to the Petroleum Products Prices Regulatory Agency (PPPRA) and the Federal Ministry of Petroleum Resources to consider the proposal.

It urged the agencies to review the current price template for fuel with a view to bringing down the price of the product to about N70 per litre.

Mr Fulata argued that over 90 percent of the price of PMS is for transport-related charges, noting that the only reason foreign vessels charged higher for lifting the PMS was that the nation’s carriers, which were supposed to lift 50 percent of the product didn’t have the capacity to do so as a result of which the NNPC often resorted to chartering vessels at higher cost.

According to him, the provision of N4.56 in the price template for lightering services was absolutely unnecessary in line with international practices, since all ships were supposed to dock at the harbour.

The lawmaker maintained that reducing the price of the commodity would lessen inflation in the country.

Arguing further, he noted that, despite the Nigerian Ports Authority (NPA) being paid 84k for every litre of petrol, it had failed to dredge the various docking areas, making ships wait at the high sea and discharged their cargoes in smaller vessels.

According to him, this inefficiency of the NPA has continued to make Nigerians pay N4.56k for every litre of petrol.

After deliberations, the House set up an ad-hoc committee to interface with the ministry on the issue and report back to it.

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Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

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