Marketers May Increase Petrol Price As NNPC Introduces New Charges

There are strong indications that pump price of Premium Motor Spirit (PMS) popularly known as petrol will be raised by marketers.
This is coming as the nation grapples with challenges in products distribution occasioned by recent off spec petrol importation by partners of the Nigerian National Petroleum Company (NNPC) Limited.

A letter from NNPC Limited sighted on Monday has introduced fresh marine charges for marketers.

It was revealed that petroleum marketers and depot operators are currently meeting to agree on allowable adjustment any moment from now.

A highly placed industry source told our correspondent that the country will witness new pump price of petrol after marketers conclude their engagement.

The letter with Ref. NNPC/ML/STS01, dated February 18, 2022 and addressed to all marketers titled, “Payment Of STS Coordination Charge” signed by O.I O Ajilo on behalf of GGM Shipping, reads thus: “Please be informed that the NNPC Management has directed that effective 10th February 2022, the sum of Five Hundred Thousand Naira, (N500,000.00) only will be charged for STS Coordination fee for each transshipment operation involving NNPC Marine Logistics.

“This amount is to cover manpower and logistics required for coordination and production of cargo documents for the transshipment operations.

“A remita payment request will be generated by our accounts section for each operation to effect necessary payment upon the vessels tendering notice of Readiness, NOR.”

Our source revealed thar the process of treating the off-spec PMS is on-going as advised by chemists and analytical laboratories as sludge extracts are being processed and disposed off without any harm to the environment.

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

The source hinted that a point of serious concern to marketers is that while NNPC Limited and its business units, which are also ‘Limited’ are  recovering all their costs by passing same to marketers, there is no approval for marketers to pass the same costs to the pump buyers even as they cannot absorb the costs.

“For instance, a newly introduced cost is the bill of N500k imposed on marketers by NNPC for the ‘daughter vessel’ Bill of Lading/co-ordination fee!
“Prior to now, marketers charter NNPC vessels and pay in Naira however we are now forced to source US dollars to pay for the charter of NNPC vessels; this is separate from the costs of fenders and other ancillary costs now separated from vessel charter cost which marketers now bear but which we have no approval to pass on to the pump.

“NMDPRA and NNPC have both stated the FG’s reluctance to review pump price but since they have passed them to marketers, the latter will reflect it either ex-depot or at the pumps.

“Marketers are business owners who mostly operate on bank loans and we too must recover all costs,” the source stated.