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No plans to increase fuel price – NNPC

by on April 6, 2017
 

Following the recent increase in the bridging allowance to transporters from N6.20 to N7.20, the Nigerian National Petroleum Corporation (NNPC) has clarified that it will not lead to an increase in the pump price of Premium Motor Spirit (petrol) from the prevailing price of N145 per litre.

The increase in the bridging allowance led to the suspension of nationwide strike action by Tanker Drivers on Monday.

Providing the clarification in Abuja on Wednesday, the Chief Operating Officer, COO, in charge of downstream operations of the Corporation, Mr. Henry Ikem Obih, said there was no plan by government or any of its agencies to review the pump price of petrol above N145 per litre.

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A statement by NNPC’s spokesman, Ndu Ughamadu said Ikem Obih explained that the rise in the bridging cost was achieved after an adjustment was made in the “lightering expenses” from N4 to N3 per litre and the difference transferred to compensate for the cost of bridging within the same template.

The bridging allowance refers to the cost element built into the products pricing template to ensure a uniform price of petrol across the country, while lightering expenses involve charges for moving products to depot area from mother vessels by light vessels due to the inability of the former to berth in shallow water depth.

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“What happened, in simple language, is a rebalancing of the margins allowed and approved for stakeholders. So, what the Petroleum Products Pricing Regulatory Agency (PPPRA), did was to take N1 from lightering expenses and add same to the bridging allowance.

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