Tuesday, 29 November 2016

House of Reps want fuel price reduced to N70

The House of Representatives on Tuesday urged the Petroleum Products Prices Regulatory Agency (PPPRA) to reduce the price of Premium Motor Spirit (PMS) to N70.

Abubakar Fulata in a motion titled “Urgent Need to Review the Petroleum Price Template”

said the current price of PMS could be reviewed downwards without affecting the profit margin of marketers and transporters.

“I am aware that the current cost of freighting PMS stands at N109.1, Lightering 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,” he said.

He further informed the House that the landing cost of PMS remained at N119.74, while the distribution cost and margins of marketers stood at N18.37.

“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.”

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