The House of Representatives has called on the Ministry of Petroleum Resources and Petroleum Products Prices Regulatory Agency (PPPRA) to review the current price of petrol to N70.04 per litre.
The call followed a motion by a member, Abubakar Fulata, titled “Urgent Need to Review the Petroleum Price Template”.
Fulata, who revealed that NPA’s inability to dredge the ports despite collecting N0.84 for every liter of petrol, had caused Nigerian users to pay N4.56 for every liter of petrol they buy, said:
“I am aware that the current cost of freighting PMS stands at N109.1, Lightening 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,”
“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,”
“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 vandalized 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,”
The House also set up an ad-hoc committee to liaise with the Federal Ministry of Petroleum Resources on the review of the price of petrol.