Increase in Petrol price likely as freight rate rises to 21.30%

The Federal Government might increase pump price of Premium Motor Spirit (PMS) known as petrol as freight rate will be increased from N7.51 per litre to N9.11 per litre. This translates to a 21.30 per cent hike in freight rate, which is a component of the total cost of petrol under the guide of the Petroleum Products Pricing Regulatory Agency (PPPRA).

To this end, The Federal Government has commenced discussions with representatives of the organised labour on the possible increment.

This increment in freight is expected to affect the total calculation, unless there is an equivalent reduction in other cost elements.

Executive Secretary, Petroleum Equalisation (Management) Board (PEF), Alhaji Ahmed Bobboi , made this declaration at the 21st Annual General Meeting (AGM) of the National Association of Road Transport Owners (NARTO) held in Niger state.

He said the agency was waiting for the approval of the Federal Government before it would begin the implementation of the new freight rate of N9.11 per litre.

According to Bobboi, The Federal Government was expecting labour unions to revert to it on the agreement it has taken from the joint committee set by the government on the hike in the price of petrol and electricity.

While fielding questions from journalists, Nigerian National Petroleum Corporation (NNPC) Group Managing Director (GMD) Malam Mele Kyari who was represented by the corporation’s chief financial officer, Umar Ajiya said upon conclusion of the deliberations with labour, Federal Government will announce the effective date in line with the pricing template.

He said, “The Executive Secretary of PEF made a statement that there is presently, an engagement between the Federal Government and the labour, and at the end of that process government will make adequate pronouncement as to the effective date of that figure as contained in the pricing template.”


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