New NNPC charges could trigger gas pump price hike


There are strong indications that the pump price of Premium Motor Spirit (PMS), popularly known as gasoline, will be raised by traders. This comes as the country grapples with challenges in product distribution occasioned by the recent importation of off-spec gasoline by partners of the Nigerian National Petroleum Company (NNPC) Limited.

A letter from NNPC Limited seen by LEADERSHIP on Monday introduced new shipping fees for traders.

LEADERSHIP surveys have revealed that oil traders and depot operators are currently meeting to agree on an allowable adjustment at any time.

A highly placed industry source told our correspondent that the country will see a new pump price for gasoline once traders complete their pledge.

The letter with Ref. NNPC/ML/STS01, dated February 18, 2022 and addressed to all marketers, titled “STS Coordination Fee Payment”, signed by OI O Ajilo on behalf of GGM Shipping, reads: “Please note that NNPC management has ordered that from February 10, 2022, the sum of Five Hundred Thousand Naira (N500,000.00) will only be charged for the STS Coordination Fee for each transshipment operation involving NNPC Marine Logistics.

“This amount is intended to cover the labor and logistics required to coordinate and produce cargo documents for transshipment operations.

“A Rebate Payment Request will be generated by our accounts section for each operation to effect the necessary payment upon the vessels submission of the Notice of Readiness, NOR.”

Our source revealed that the off-spec PMS treatment process is ongoing as advised by chemists and analytical labs as the sludge extracts are treated and disposed of without any harm to the environment.

The source, however, said that the Petroleum Products Marketing Company (PPMC) brings in cargoes for the above process and for distribution to the buying public, but needs to do much more.

The source suggested that a point of serious concern for marketers is that if NNPC Limited and its business units, which are also ‘limited’, recover all of their costs by passing them on to marketers, there is no has no approval for marketers to pass on the same costs to pump buyers even if they cannot absorb the costs.

“For example, a newly introduced cost is the N500,000 bill imposed on traders by NNPC for the ‘daughter ship’ bill of lading/coordination fee!!!

“Traders used to charter NNPC vessels and pay in Naira, but now we are forced to find US dollars to pay for chartering NNPC vessels; this is separate from the cost of fenders and other ancillary costs now separate from the cost of chartering the ship which traders now bear but which we are not allowed to pass on to the pump.

“NMDPRA and NNPC have both stated the FG’s reluctance to review the price at the pump, but since they have passed it on to traders, traders will reflect it either on departure from the depot or at the pump.

“Marketers are business owners who operate primarily on bank loans and we need to recover all costs as well,” the source said.


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