New fuel price hike from shipment charge for manpower and logistics
By Jeph Ajobaju, Chief Copy Editor
Fuel scarcity for three weeks has jettisoned official price at between N162 and N165 per litre for anything between N170 and N600 in different parts of the country and a new levy on transshipment may retain the high price even if supply returns in full.
The Nigerian National Petroleum Company (NNPC) has introduced a N500,000 Ship-to-Ship Coordination Charge per imported refined petrol transshipment involving NNPC Marine Logistics.
The levy is part of initiatives by the NNPC to fully recover operational costs since the Petroleum Industry Act (PIA) has made it a limited liability company.
But the move has forced depot owners to raise ex-depot price of petrol to between N162 and N170 per litre, against approved price of between N142 and N145.
If the hike remains, pump price may soon exceed N180 per litre instead of the official price of between N162 and N165.
The price may be effected by independent oil marketers who operate about 90 per cent of filling stations across the country. Only mega stations and those owned by major marketers may retain the current official price.
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NNPC writes to marketers on transshipment charge
Official documents seen by The PUNCH in Abuja show that the N500,000 transshipment charge introduced by the NNPC led to the rise in ex-depot price.
A letter dated 18 February 2022 (reference NNPC/ML/STS01) the NNPC wrote to all marketers explained that the charge would cover the costs of manpower and logistics, among others.
“Please be informed that the NNPC management has directed that effective February 10, 2022, the sum of N500,000 will be charged for STS Coordination fees for each transshipment operation involving the NNPC Marine Logistics.
“This amount is to cover manpower and logistics required for coordination and production of cargo documents for the transshipment operation,” said the letter, which was signed by O.I.O. Ajilo for NNPC Group General Manager, Shipping.
“A Remita payment request will be generated by our accounts section for each operation to effect necessary payment upon the vessel’s tendering Notice of Readiness. Thank you for your anticipated cooperation and understanding.”
NNPC names those exempted
Another letter dated 8 February 2022 (reference GGM/ML/04) Marine Logistics General Manager wrote to marketers explained the functions of Marine Logistics.
The letter, signed by Asuquo Inuikim, read in part: “Kindly recall that customers (PPMC, NNPC Retail and third-party marketers) who hire ML (Marine Logistics) vessels for STS and discharge operations are charged STS fees which is included in the vessel freight.
“However, third-party marketers who do not hire Marine Logistics vessels are serviced free.”
Depot owners criticise new levy
Two depot owners who spoke anonymously to The PUNCH for fear of victimisation criticised the NNPC for introducing a new charge that will end up raising fuel pump price when the sector has not been fully deregulated.
Depot owner A
“When everyone is accusing marketers for increasing ex-depot price, who will protect and defend marketers from costs such as this?
“The NNPC business units have been singing songs like ‘since we are now a limited liability entity, all costs must be fully recovered.’
“And with that, several costs such as the above have been imposed on marketers since the signing of the PIA 2021, yet the sector is not fully deregulated to enable marketers recover these costs being imposed on marketers.”
Depot owner B
“These costs are borne by marketers with the imposed unofficial dollar exchange rates by the NPA and NIMASA, which are charges on marketers’ vessels, as both insist on being paid in foreign exchange, which is never available at the official Central Bank of Nigeria rate but is sourced at the parallel market.”
“Marketers have escalated [their concerns] to the highest level.
“The Presidency gave instructions for the reversal of the dollar invoices but the NPA and NIMASA refused to comply. These are just few of the reasons why some depots sell above official rates. They are simply recovering their costs just like the NNPC Limited.
“Imagine to issue BL (Bill of Lading) costs N500,000! They don’t process approval for private vessels; they do that only for vessels on time charter with the NNPC, yet they charge us N500,000!”
Depot owners said they have no option but to recover their cost, warning that the pump price will rise beyond the official price of between N162 and N165 per litre.
NNPC denies knowledge of price increase
NNPC spokesperson Garba-Deen Muhammad said he is not aware of increase in ex-depot price of petrol.
NMDPRA asks marketers to lodge a formal complaint
Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) spokesperson Kimchi Apollo said independent marketers should lodge a formal complaint with the NMDPRA.