an NNPC mega station:

The Nigerian National Petroleum Corporation, NNPC, on Wednesday said emphatically that it has no plan to increase the pump price of petrol from the present pump price of N145 per litre.

In a press statement signed by Mr Ndu Ughamadu, its Group General Manager, Public Affairs, NNPC said the recent increase in bridging allowance to transporters from N6.20 to N7.20 per litre will not lead to an increase in the pump price of Premium Motor Spirit, PMS.

“What happened, in simple language, is a rebalancing of the margins allowed and approved by 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. That is how we arrived at N7.20. Therefore, PMS remains at the ceiling of N145 per litre,’’ said Chief Operating Officer, COO, in charge of Downstream operations of the Corporation,

“That is how we arrived at N7.20. Therefore, PMS remains at the ceiling of N145 per litre,’’ said Chief Operating Officer, COO, in charge of Downstream operations of the Corporation, Mr Henry Ikem Obih.

According to him, 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.

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.

Obih said with 1.3billion litres of petrol which translated to an inventory of 36 days, the country has more than enough product in stock and there is no need for any scarcity.

“What this means is that even if we stop importation or refining of petrol right now, we have enough products in-country to provide for the needs of every Nigerian for a period of 36 days,’’ he said.

Obih said supply availability is further bolstered by the production of petrol from the three refineries located in Port Harcourt, Warri and Kaduna.

“There is absolutely no risk of shortage in supply as we also continue to import to support the production from the refineries, we have informed the Department of Petroleum Resources, DPR, to enforce the prevailing N145 per litre price regime and also ensure that every service station that has fuel is selling to the public,’’ he said.

He, therefore, reiterated the readiness of the NNPC Management under the leadership of Dr Maikanti Baru to sustain the existing cordial relations between the NNPC and the leadership of the downstream industry unions and other stakeholders.

Obih said the DPR which is the regulatory arm of the industry had been alerted to sanction fuel station owners who engage in hoarding or charge consumers in excess of the approved pump price of petrol.

NNPC GMD, Dr Maikanti Baru had on Monday announced the review of the bridging allowance at a mediation meeting between the Petroleum Tanker Drivers, PTD, and the Nigerian Association of Road Transport Owners, NARTO.

In attendance at the resolution meeting were the NUPENG National President, Comrade Igwe Achese, who announced the suspension of the strike; the National President of PTD, Comrade Salimon Akanni Oladiti, his NARTO counterpart, Alh. Kassim Ibrahim Bataiya; and Chairman of House of Representatives Committee on Downstream, Honourable Joseph Akinlaja.

This led to the suspension of strike embarked upon by the tanker drivers unit of NUPENG.