Fuel scarcity: Nigerian govt, governors to parley NNPC over pump price

Fuel scarcity: Nigerian govt, governors to parley NNPC over pump price
February 16 03:45 2018 Print This Article

By Ahmed Idris

The National Economic Council (NEC) on Thursday mandated its Committee on Forensic Audit of revenue accrued into the Federation Account, Excess Crude Account and Consolidated Revenue Fund chaired by Governor Ibrahim Dankwambo of Gombe state to interface with the Nigerian National Petroleum Corporation (NNPC) to determine appropriate price of petrol.

Addressing State House correspondents at the end of the monthly NEC meeting in Abuja chaired by Vice President Yemi Osinbajo, Governor Mohammed Abdullahi Abubakar of Bauchi state said the decision was as a result of fluctuations in the landing cost of imported refined petroleum products.

He said: “The second issue that was discussed was the issue of the scarcity of petroleum product. The problem was addressed by the Group Managing Director of the NNPC. The issue is of course caused by an inter-play of the change rate of the Naira and the Dollar and the price of crude oil at the international market which affects the landing cost of refined products in Nigeria.

“And in the process makes the operation of the current price regime almost impossible without some measure of nil return for whoever is in the process. As at today, most of the independent marketers have stopped importing refine products into Nigeria.

“It is only the NNPC that has been doing it. And the NNPC has been suffering a lot of set backs, the highest amount of under recovery. By under recovery it means the inter-play between the landing cost of a liter of the PMS in Nigeria and the pimp price of that product. If the product lands at N170 for example and you sell at N145, immediately you know that you have an under recovery of about N25 for each liter of fuel.

“So he submitted his report and the National Economic Council has a committee that has been interfacing with all revenue generating agencies of the federal government under the chairmanship of the governor of Gombe State. That committee has been charged with the responsibility of interfacing with NNPC with a view to determining the correct price for PMS considering the price of the product in especially countries that are bordering Nigeria. Because that is one of the reasons that encourages smuggling of the products to these areas.”