Good news? See the reason why fuel price may be reduced to N70 per litre

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fuel-scarcity

A lawmaker of the green chamber is pursuing a strong call for the reduction in the price of fuel to ameliorate the current hardship in the country.

The House of Representatives on Tuesday urged the Petroleum Products Prices Regulatory Agency (PPPRA) to review the current price template for Premium Motor Spirit (PMS) with a view to reducing the price to N70, Vanguard reports.

This followed the adoption of a motion sponsored by Rep. Abubakar Fulata titled “Urgent Need to Review the Petroleum Price Template”.

Moving the motion, Fulata expressed dismay over the circulating rumour of a possible hike in the price of petrol in the country. Although the rumour was denied by the Federal Ministry of Petroleum Resources, Fulata said it was coming at a time when the nation is going through difficult times.

According to him, the hard times are occasioned by dwindling revenues, high inflation rate, unemployment and general fall in the standard of living of many Nigerians. The lawmaker noted that the current template for the price of PMS could be reviewed downwards without affecting the profit margin of marketers and transporters.

The review would also contribute to reducing the current inflationary trend in the economy.

“Storage charges N2.00, retailers margin N6.00, transport allowance N3.36, dealers margin N2.36, bridging fund N6.20 and marine transport average put at N0.15 bringing the total cost to N137.81,” he said.

He further informed the House that the landing cost of PMS remained at N119.74, while the distribution cost and margins of marketers stood at N18.37.

“Thus, the total of both the landing and distribution costs is N138.11, while marketers are allowed to sell the product within the range of N140 and N145 per litre. Fulata further noted that over 90 percent of the current price of PMS in the country is accounted for by transport related charges at N124.34 out of N138.11.”

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