Stakeholders back Petrol Pump Price downward review

The House of Representatives ad hoc committee, on the review of the pump price of petrol and petroleum products, on Monday, kick-started with stakeholders supporting the downward review of the pump price.

The Chairman of the ad hoc Committee, Honourable Raphael Nnanna Igbokwe, in his opening address, noted that the people were concerned with the general increase in prices of goods and services, partly due to the increase of Petrol to N145 per litre.

According to him, “Can Nigerians be paying the cost of Capital by importers and dealers? Can Nigerians be paying for lathering services when there are agencies whose duties are to dredge our sea? How effective and transparent are the bridging claims?”

The lawmaker said that though the increase was said to eliminate payment of subsidy by government, and the attendant fraud, justification has to be given on the N145 being charged, and if Nigerians are getting value from the agencies who earn  income from the price template of petrol.

Hon. Igbokwe, accused a number of government agencies of contributing to the astronomical price of petrol, which is presently causing Nigerians great pains and suffering.

The lawmakers said the Nigerian Ports Authority is not doing enough to justify the 84 kobo/litre collected from importers.

According to him, “NPA would have justified the amount it collects if the seas are dredged and vessels do not have to endure ship-to-ship discharging of products which adds to costs of products and loss of revenue for the country.”

The Petroleum Products Prices Regulatory Agency (PPPRA) represented by its Executive Secretary, Victor Shidok, told the committee that the 30 kobo administrative charge on petrol is for services like data capturing and monitoring by staff deployed to depots across the country.

The committee however insisted that the agency must present its list of inspectors engaged from 2012 till date, amounts paid, copies of agreements entered into, and proof of payment

The agency is also to provide proof of total amount received as administrative charges from 2012 to date.

The Executive Secretary Major Marketers Association of Nigeria (MOMAN), Obafemi Olawore, said that the fact that importers pay Nigeria Maritime Safety Administration Agency, NIMASA and the Nigerian Ports Authority, NPA in Dollar is pulling a great strain on the Naira.

He added that NPA’s 84 kobo/litre and NIMASA’s 22 kobo/litre Harbour and wharfage charges are statutory, they are high, stressing that, NPA’s port charges “is the highest in the West Africa sub region.”

He also complained over multiple levies by government agencies and even state government, and pleaded with the committee to intervene.

President, Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), Igwe Achese, President of Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), Francis Johnson and President Trade Union Congress (TUC), Comrade Bobboi Kaigama, all insisted that Nigerians will not accept another increase in petrol price.

The labour unions in their position maintained that if refineries are working, the country would not need to import products with the attendant exorbitant costs.

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