NNPC Says No Hike In Petrol Pump Price
The Nigerian National Petroleum Corporation (NNPC) has assured Nigerians that it has no plan to increase the pump price of Premium Motor Spirit (PMS), also known as petrol.
In a statement issued on Wednesday by the NNPC spokesman, Ndu Ughamadu, the Corporation explained that the recent increase in bridging allowance to transporters from 6.20 Naira to 7.20 Naira per litre will not affect the prevailing petrol price of 145 Naira per litre.
According to the statement, the clarification was made in Abuja by the NNPC Chief Operating Officer (COO) in charge of Downstream Operations, Mr Henry Ikem Obih.
“Rebalancing Of The Margins”
Mr Obih said there was no plan by government or any of its agencies to review the pump price of petrol above 145 Naira per litre, adding that the rise in the bridging cost was achieved after an adjustment was made in the “lightering expenses” from Four Naira to Three Naira per litre, and the difference transferred to compensate for the cost of bridging within the same template.
The bridging allowance refers to the cost element built into the products pricing template to ensure a uniform price of petrol across the country, while lightering expenses involve charges for moving products to depot area from mother vessels by light vessels, due to the inability of the former to berth in shallow water depth.
“What happened, in simple language, is a rebalancing of the margins allowed and approved for stakeholders. So what the Petroleum Products Pricing Regulatory Agency (PPPRA) did was to take One Naira from lightering expenses and add same to the bridging allowance, that is how we arrived at 7.20 Naira. Therefore, PMS remains at the ceiling of 145 Naira per litre, he said.
“No Risk Of Shortage”
On the availability of product supply, the COO said as at Wednesday, Nigeria has 1.3 billion litres of petrol which translates to an inventory of 36 days.
“What this means is that even if we stop importation or refining of petrol right now, we have enough products in the country to provide for the needs of every Nigerian for a period of 36 days,” he said.
Obih noted that the supply availability was bolstered with the production of petrol from the three refineries located in Port Harcourt, Warri and Kaduna.
“There is absolutely no risk of shortage in supply as we also continue to import, to support the production from the refineries. We have informed the Department of Petroleum Resources (DPR) to enforce the prevailing 145 Naira per litre price regime, and to also ensure that every service station that has fuel is selling to the public,” he said.
The COO reiterated the readiness of the NNPC management under the leadership of its Group Managing Director, Dr. Maikanti Baru, to sustain the existing cordial relationship between the Corporation and the leadership of the downstream industry unions and other stakeholders.
He said the DPR, which is the regulatory arm of the industry, had been alerted to sanction fuel station owners who engage in hoarding, or charge consumers in excess of the approved pump price of petrol.
Dr. Baru had announced the review of the bridging allowance on Monday at a mediation meeting between the Petroleum Tanker Drivers (PTD) and the Nigerian Association of Road Transport Owners (NARTO),