The House of Representatives has asked 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. Abubaker Fulata titled “Urgent Need to Review the Petroleum Price Template”. 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.
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.
“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… Also a realistic template would bring down the price of petrol to N70.04,” he added.
