shippingposition
  • Home
  • News
  • Editorial
    • Vox Pop
  • Maritime safety
  • Oil and Gas
  • Personality
  • Health
No Result
View All Result
shippingposition

Home » New Petrol Regulations Seek Forex Parity Between NNPC, Marketers

New Petrol Regulations Seek Forex Parity Between NNPC, Marketers

by Joshua
February 8, 2021
in Oil and Gas

Nigeria Labour Congress (NLC) and the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) have said they are studying new regulations adopted by the Federal Government to guide importation, pricing and distribution of petrol.

The unions promised to make their positions known soon.

Under the new rules, which was submitted by the Technical Committee on Premium Motor Spirit (PMS) Pricing Framework, there is now a single forex window for all petroleum products importers into the country including the Nigerian National Petroleum Corporation (NNPC).

Also, the technical committee recommended the issuance of monthly pricing guide by the Petroleum Products Pricing Regulatory Agency (PPPRA).

The technical committee, which was inaugurated on December 14, 2020 by the Minister of Labour and Employment, Dr. Chris Ngige, is chaired by Onochie Azubuike Anyaoku.

The terms of reference of the committee include coming up with a viable framework for PMS price modulation.

Submitting the report of the committee to the Federal Government in Abuja, Anyaoku pointed out that the non-adoption of common exchange rate exposed Nigerians to possible exploitation.

He also said the operations and charges of Nigeria Ports Authority (NPA) and Nigerian Maritime Administration and Safety Agency (NIMASA) helped to push up the price of petrol in the country.

The committee recommended that the charges of NPA and NIMASA, which are currently domiciled in dollar, should be paid in naira to ease pressure on national currency and ease operations of petrol importers.

The report stated: “Non-adoption of common exchange rate will expose Nigerians to exploitation by market participants. Universal exchange rate is the most effective way of liberalising the sector and introducing competitiveness that will ultimately lead to fair price. On lightering expense, about 70 per cent of the ship to ship happen in the Lagos area. NPA and NIMASA charges are paid in U.S. dollars. Marketers are compelled to source forex from the parallel market to pay the charges, thereby leading to higher pump price. This is responsible for the lightering expense of about N4 per litre.”

The report noted that observations were made about the beneficiaries of wholesale margin meant for the importer. The existing template dedicated the margin only to any company that delivers product. Consequently, bulk importers do not have margin at all for import activities.

The report recommends that the PPPRA should convey periodic meetings with Petroleum Products and Marketing Company (PPMC) and other importers to construct actual costs of supply reflective determination as an interim solution to the confusion in the downstream sector.

It added that the NLC and its Trade Union Congress (TUC) counterpart as well as PENGASSAN and NUPENG should witness the determination of prices at periodic meetings with other stakeholders.

The committee also mandated NNPC and all importers to make import data available to the PPPRA to facilitate informed decisions on price guide.

The report also noted that all importers, including NNPC must adopt the same forex window to ensure accurate pricing.

Accordingly, PPPRA board should adopt closest average as a basis for price determination.

PPPRA is to also ensure market rates for shuttle vessels are monitored and reflected on a monthly basis while government should enforce the immediate collection of NPA and NIMASA charges in Naira to reduce pressure on forex demands and price hike.

The technical committee also proposed a 50 per cent reduction of NPA and NIMASA charges to reduce pump price of petrol in the country.

The committee urged the Federal Government to embark on massive campaign on the benefits of deregulation and targeted communication on distinction between price fixing during regulated price regime and issuance of monthly guiding price by the PPPRA under a deregulated regime.

 


Related Posts

Nigeria’s Daily Crude Oil Production Drops To 937,766 bpd In September

Nigeria’s Crude Oil Export Revenue Drops by 17% to $6.68 Billion in First Two Months of 2025

June 1, 2025
President Tinubu Signs 6 IMO Instruments Of Accession

FG Rallies Stakeholders to Accelerate Nigeria’s Gas Revolution, Signs Agreement with Ten Equity Partners

June 1, 2025
The Return of Standards Organisation of Nigeria to the ports

SON Raises Concern Over Influx Of Adulterated Lubricants, Engine Oil

June 1, 2025
Tensions Rise as Bayelsa Host Communities Threaten Shutdown Over Security Contracts

Tensions Rise as Bayelsa Host Communities Threaten Shutdown Over Security Contracts

June 1, 2025

Discussion about this post

Latest News

Customs Intercepts ₦9.2bn Worth of Fake Bedroom Booster, Others

Customs Intercepts ₦9.2bn Worth of Fake Bedroom Booster, Others

July 11, 2025

Customs, NAFDAC Inaugurate Implementation Committee for 2024 MoU

Nigeria Customs Intercepts Container with Over 10,000 Donkey Genitals

Senate Hails Adeniyi’s Election as WCO Council Chair, Says It’s  a Major Win for Nigeria’s Global Trade Leadership

Oyetola Launches Door-to-Door’ Diplomacy for Nigeria’s IMO Council Bid

FG Urged To Link Warri-Itakpe Rail To Inland Ports, Road Networks

Red Sea Operation Rescues 4 More From Cargo Ship Sunk By Houthis

Shippers’ Council Set to Establish Border Information Centre at Idiroko, Bolster Trade Efficiency

NSC Boss Urges Cooperative Members to Invest in Housing for Long-Term Wealth

FAAN, Customs Intensify Efforts To Exit Grey List

Lekki Port Expands Reach with Transhipment to West African Ports, Eyes 500,000 TEUs in 2025

MAMAL 2025: MARAN Targets Maritime Fraud, Demands End to War Risk Premiums on Nigerian Trade

kindly like our Facebook page

Health

Contraceptive Pills Can’t Cause Cervical Cancer – Expert
Health

Contraceptive Pills Can’t Cause Cervical Cancer – Expert

June 30, 2025

Mrs Roseline Akinlabi, Adolescent and Youth Sexual Reproductive Health Desk Officer, Osun Primary Healthcare Board, says contraceptive pills cannot cause...

ONIONS: The Good Old Healing Vegetable

KNOW YOUR BODY PARTS: The Liver

June 16, 2025
ONIONS: The Good Old Healing Vegetable

ONIONS: The Good Old Healing Vegetable

June 16, 2025
Why Prostate Disorder Cases Are Increasing Among Nigerian Men – Experts

Why Prostate Disorder Cases Are Increasing Among Nigerian Men – Experts

June 1, 2025
20m Nigerians Live With Mental Health Issues, Says WHO

20m Nigerians Live With Mental Health Issues, Says WHO

June 1, 2025
Health Facts You Didn’t Know

How Your Habit Affects Fertility

May 19, 2025
Fruits For Raining Season

Fruits For Raining Season

May 19, 2025
See Mental Illness Like Other Treatable Diseases – Says Suicide Survivor

Health Facts You Didn’t Know

May 19, 2025
Alligator Pepper: Benefits, FAQ, Side Effects, & Warning

Alligator Pepper: Benefits, FAQ, Side Effects, & Warning

April 28, 2025
Water And Health: The Relationship That Helps Life

Water And Health: The Relationship That Helps Life

April 28, 2025

© 2021 Shippingposition

Navigate Site

  • Home
  • About Us
  • Contact us
  • Privacy Policy
  • Sitemap
  • Terms

Follow Us

No Result
View All Result
  • News
  • Coast To Coast
  • Oil and Gas
  • Maritime Education
  • The Terminals
  • Maritime safety

© 2021 Shippingposition