Reps To Amend PIA To Include Downstream Stakeholders On NNPCL Board

The House of Representatives Committee on Petroleum Downstream has pledged to expand consultations to amend the Petroleum Industry Act (PIA) to include downstream stakeholders on the board of NNPCL.

The Chairman of the committee, Hon. Ugo Chinyere (PDP-Imo) made this known while briefing newsmen after a stakeholders meeting on Friday in Abuja.

He said that the meeting was to find permanent solutions to the challenges behind suspended strike by the National Association of Road Transport Owners (NARTO) and Petroleum Product Retail Outlet Owner of Nigeria (PETROAN)

He said that the aim is to ensure efficient distribution of energy to guarantee availability, stability and affordability.

“And also, were agreed to consult further on the issue of amending Petroleum Industry Act (PIA) to provide room for inclusion of stakeholders in the downstream sector, petroleum distribution and retailing chain in the board of NNPCL so that they can be part of those decision making process.

“So that they will be able to resolve challenges when they come up without us waiting for a strike before stakeholders can come together and start tackling it.

“And also the committee agreed with NARTO and PETROAN to find sustainable solutions to the present challenges facing the petroleum product distribution and retail outlets owner to avert any further strike or disruption of the supply or retail channel.

“The committee agreed with NARTO and PETROAN for an all inclusive meeting with leadership of the National Assembly, regulators and other key stakeholders to tackle issues of multiple charges, shall practices and rising costs of transportation to help achieve sustainable and affordable product distribution and pricing system,” he said.

The chairman said that the committee will investigate allegations claiming that retail owners that paid for petroleum products did not get supply after several months and the alleged introduction of middlemen.

The lawmaker said that the committee will also look into reasons responsible for poor functioning of pipelines and refineries in the country.

He said that among others, the committee will look into issues concerning local refiners and access to funds for them will be looked into to create jobs.

Earlier, Board Chairman of NARTO Alhaji Kassim Bataiya decried the attitude of government and stakeholders to the association.

He said that the establishment of the association became necessary following the failure to sustain the nation’s pipelines to distribute petroleum products.

He said that since the enactment of the PIA and removal of subsidy, efforts to get markers negotiate new rates with transporters proved abortive.

“It is for this reason, we find it very difficult to operate after nobody listened to negotiate with us, we have no option other than to pack the trucks and wait for further intervention.

“Let me give you a typical example; we are paid N30 per litre to lift Premium Motor Spirit (PMS) from Lagos to NNPC depot in Suleja.

“N30 Naira per litre for 40,000 litres is N1.2 million and the truck consumes a minimum of 900 litres of diesel at N1500 Naira per litre, which is about N1.4 50 million.

“In addition, the N1.3 million freight rate is subject to 5 per cent withholding tax deducted and payable to the Federal Inland Revenue Services (FIRS) which would be shared to the three tiers of governments,” he said.

He said that transporters are faced with high cost of spare parts as a result of dollar rate, lack of access to forex for spare parts, high cost vehicle maintenance, bad roads and insecurity.

On his part, the President of PETROAN, Billy Gillis-Harry called for total support and collaboration of the committee to enhance PETRON’s productive activities for efficient distribution of petroleum products within the country.

He said that the patriotic efforts of PETROAN to develop the Petroleum Products Passport (3P) should be acknowledged, encouraged, and adapted for use by NNPC and all stakeholders in the industry.

Gillis-Harry called for the establishment of a petroleum marketing and consumption council and the establishment of a petroleum energy bank just like the Bank of Industry and Bank of Agriculture.