- Petrol Price Template Unaffected by Bridging Cost
The Petroleum Products Pricing Regulatory Agency has said that the additional N1 per litre transporters’ bridging fee for Premium Motor Spirit, popularly known as petrol, will not in any way affect the pricing template for the commodity.
The PPPRA is the agency of the Federal Government responsible for the fixing and regulation of petroleum product prices across the country.
The Group Managing Director, Nigerian National Petroleum Corporation, Dr. Maikanti Baru, announced last week that the bridging allowance to transporters of PMS had increased from N6.20 to N7.20, a development that led to speculation of an imminent hike in the pump price of petrol.
But the Acting Executive Secretary of the PPPRA, Mr. Victor Shidok, diffused the speculation, describing it as mere rumour and that the template for PMS was not affected by the increase in transporters’ bridging allowance.
The bridging allowance refers to the cost element built into the product’s pricing template to ensure a uniform price of petrol across the country.
Shidok said, “Following the news making rounds of an imminent increase in the pump price of PMS by N1/litre as a result of a corresponding increase in the Petroleum Equalisation Fund’s bridging allowance, the PPPRA wishes to state that there is no truth whatsoever in the claim.
“As the agency of government responsible for products’ price adjustment, we wish to categorically state that the price cap for PMS remains N145/litre, and that the recent additional N1/litre transporters’ bridging rate shall not in any way affect the PPPRA template.
“The PPPRA uses this opportunity to again assure all stakeholders and members of the public of uninterrupted products’ supply and distribution, pursuant to the overall goal of facilitating a vibrant and robust downstream oil and gas sub-sector.”
Last week, the Chief Operating Officer, Downstream, NNPC, Mr. Henry Obih, said there was no plan by the government or any of its agencies to increase the pump price of petrol above N145 per litre.
He 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 used to compensate for the cost of bridging in the same template.