The House of Representatives has faulted the current pricing template for Premium Motor Spirit, better known as petrol, saying that a realistic pump price should not be above seventy Naira per litre.
To this end, the House is asking the Petroleum Products Pricing Regulatory Agency and the Ministry of Petroleum Resources to review the current price template of petrol with a view to bringing down the price of the product.
Acting on a motion moved by ABUBAKAR HASSAN-FULATA, the member representing Birniwa/Guri/Kiri-Kasamma of Jigawa state, the House noted that 90 per cent of the current cost of PMS at one hundred and twenty four naira was introduced by factors related to transport charges, which were transferred to consumers by the marketers.
The motion for the review of the pump price received unanimous endorsement of members at Tuesday’s plenary, which was presided over by the Speaker, Mr. YAKUBU DOGARA.
The House also directed the Ministry of Petroleum Resources to ensure that the price review was done within eight weeks.
It might interest you to know that the landing cost of the product today is one hundred and nineteen naira seventy four kobo, while the distribution margin and other costs add up to eighteen naira thirty seven kobo, bringing the total to one hundred and thirty eight naira eleven kobo.
However, marketers are allowed to sell petrol in the range of one hundred and forty and one forty five Naira per litre.