Federal Government, ha agreed to undertake a review of the pricing template and landing cost of petrol in addition to a number of incentives for oil marketers, petroleum tanker drivers and Labour in a bid to ensure uninterrupted supply of petroleum products. The incentives were unveiled by the Group Managing Director of the Nigerian National Petroleum Corporation, NNPC, Mr. Maikanti Baru, in his presentation to the Joint National Assembly Committees on Petroleum Downstream in Abuja.
Baru said that the major complaints and challenges confronting Major Oil Marketers Association of Nigeria, MOMAN, and the Depot and Petroleum Products Marketers Association, DAPPMA, include complaints of outstanding subsidy payments, insufficient volumes and high landing cost which had brought about low margins. Others are freight differentials, especially at the Port Harcourt and Calabar ports and low draft at the port of discharge of petroleum products.
Baru said the Federal Government was waiting on the National Assembly to appropriate monies for outstanding debt payment, while the Central Bank of Nigeria, CBN is to provide foreign exchange guarantees, especially during periods of high foreign exchange demands. He also stated that the Nigerian Ports Authority, NPA, had been directed to “dredge the water channels to address the issue of low draft at the ports, while the Petroleum Products Pricing Regulatory Agency, PPPRA, is to undertake a review of the petroleum products pricing template as well as the landing cost to address the issue of freight differentials, high landing cost and low margins.”
For Petroleum Tankers Drivers, PTD, Baru said, “The Federal Government and the CBN would guarantee truck loan facility to the National Association of Road Transport Owners, NARTO, to address the challenges of ageing trucks, while the Federal Ministry of Power, Works and Housing would rehabilitate roads across the country to address the complaints of bad roads.
“The Federal Government is also considering reviewing the duties for spare parts of trucks, to address the transporters’ complaints of high duty on spare parts, put at 35 per cent compared to five per cent.”
Furthermore, petroleum workers unions’ concerns bothered on manpower shortage, outstanding subsidy payments, while Baru stated that in addition to writing to the National Assembly for appropriation to offset the outstanding claims, the NNPC would conduct a recruitment exercise to inject new manpower.
Also, the NNPC boss said the CBN would henceforth expedite or waive certain requirements for PMS import and downstream facilities, as well as ensure effecting same day payment to beneficiaries upon advise by the NNPC to address marketers’ complaints on long processing time for Letters of Credit (LC) and payment delays.
In the aspect of high LC charges, Baru stated that the CBN has agreed to remove such charges for petroleum marketers or reduce same to commercial banks’ rate of 0.25 per cent.
In addition, Baru said the NPA would henceforth accept evidence of payment to CBN to allow marketers clear petroleum vessels, instead of insisting on receipt of confirmation of payment for port charges. “The NPA is also to remain within the provisions of the PPPRAtemplate all charges on petroleum products imports, instead of the imposition of new charges, such as stevedoring charges,” he added.
Also speaking, Minister of State for Petroleum Resources, Mr. Ibe Kachikwu, urged the National Assembly to criminalise the activities of black market operators and illegal marketers of petroleum products to serve as a deterrent to saboteurs and unscrupulous individuals seeking to profit from crisis in the sector. In addition, Kachikwu reiterated the need for the country to address the issues of the refineries and infrastructure deficit, while stating that there is the need to take a critical look at a piping system that would be sufficient to transport refined fuel.
