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Reps Move To Cut Pump Price Of Petrol To N70

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The House of Representatives on Tuesday called for the reduction in the price of Premium Motor Spirit, better known as petrol, to N70.04 per litre.

TheWhistler learnt that petrol sells between the range of N143 and N145 per litre in gas stations across the country.

Why faulting the current price, which according to the lawmakers does not favour majority of Nigerians, the Green Chamber urged the Petroleum Products Prices Regulatory Agency (PPPRA) and the ministry of petroleum resources to review current price downward.

The House, acting on a motion sponsored by Mr. Abubakar Hassan-Fulata, noted that 90 per cent of the current cost of PMS (N124.34k) was introduced by factors that were unnecessary.

According to him, “The current template for the price of PMS could be reviewed downwards without affecting the profit margin of marketers and transporters and also contribute to reducing the current inflationary trend in the economy,” the legislator said.

He observed that it was unfortunate that in the case of Nigeria however, the water in the habour was shallow due to silation, which required urgent dredging.

“The provision of N4.56 in the price template for lightering services is absolutely unnecessary as, in line with international practice; all ships are supposed to dock at the harbour but in the case of Nigeria, however, the water in all the harbours is shallow due to siltation and the harbours urgent dredging.

“Though the Nigerian Ports Authority (NPA) is paid N0.84 for every litre of petrol, it has failed to dredge the various docking areas, as a result of which ships wait at the high sea and discharge their own cargo in smaller vessels and for this inefficiency of the NPA, Nigerians are asked to pay N4.56 for every litre of petrol, which would have been necessary if all docking areas have been dredged.”

The lawmaker cited jetty charges, NIMASA charges, storage charges and retailers’ margin, among others, as costs that could be removed without affecting the profit margin of the marketers.

“A realistic template will bring down the price of petrol to N70.04 per litre,” he added.

The house also resolved to set up an ad-hoc committee to interface with the ministry of petroleum on the on the review of the PMS price, while also urging the Nigerian Ports Authority (NPA) to dredge all harbours within one year to enable ships to dock.

The committee is expected to report back to the house within eight weeks for further legislative action.