Reps fume, say PPPRA fraudulent for allowing N145 fuel pump price

Nigeria’s House of Representatives members on Monday accused the Petroleum Products Price Regulatory Agency (PPPRA) of being “fraudulent” with the current pricing template set for Premium Motor Spirit (PMS).

According to the lawmakers, the price of fuel, which at present is sold at N145, should not have cost Nigerians more than N70 per litre, if unnecessary charges built in by government regulatory agencies were removed.

This was the submission of the House ad hoc committee on the Review of Pump Price of Petrol during its public hearing at the National Assembly in Abuja on Monday.

The committee led by Mr. Nnanna Igbokwe, a member from Imo State, during the public hearing questioned officials of the PPPRA, the Nigerian Ports Authority (NPA), the Nigerian Customs Service (NSC) and other industry players, including marketers.

At the hearing, the lawmakers proved that the 30k built into the template by PPPRA as “administrative charge” was uncalled for as the National Assembly also appropriated a separate budget for the same purpose.

In buttressing his argument, Igbokwe tendered a copy of the 2016 budget as evidence, disclosing where the sum of N1.3billion was approved for PPPRA to cover the cost of hiring six cargo inspectors.

He said, “In the 2017 budget, which is before us, PPPRA has a proposal of another N500million for regulation, monitoring and supply of petrol. These budgetary provisions have already taken care of the purpose for which you charge 30k on the template, yet Nigerians continue to bear the burden by paying N145 per litre.”

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The committee also questioned the rationale of the 84k built into the template as port charge paid to the Nigerian Ports Authority, adding that although the money was supposed to be used for ports services like dredging to accommodate larger vessels, but were never used for the purpose it was provided for.

Igbokwe said, “This has left Nigerians in a situation whereby they still pay for services of smaller vessels that go to Cotonou or Lome to offload products from mother vessels. PPPRA will then add the cost to the pump price and ask Nigerians to pay.”

A mild drama ensued during the hearing when the Abuja Liaison Officer of the NPA, Mr. Okon Ephraim, explained to the committee that the NPA did not understand how PPPRA arrived at the 84k payable to his agency.

The lawmakers, who fumed at the explanation, immediately summoned the Managing Director of the NPA, Ms. Hadiza Bala-Usman, to appear at the next sitting of the panel.

 

 

 

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