The House of Representatives on Tuesday faulted the current pricing template for Premium Motor Spirit, better known as petrol, saying that a realistic pump price should not be above N70.04 per litre.
It, therefore, asked the Petroleum Products Pricing Regulatory Agency and Ministry of Petroleum Resources to review the current price template of PMS with a view to bringing down the price of the product.The landing cost of the product today is N119.74k, while the distribution margin and other costs add up to N18.37k, bringing the total to N138.11k.However, marketers are allowed to sell petrol in the range of N140 and N145 per litre.But, on Tuesday, the House, acting on a motion moved by Mr. Abubakar Hassan-Fulata, noted that 90 per cent of the current cost of PMS (N124.34k) was introduced by factors that were unnecessary.It said the factors were related to transport charges, which were transferred to consumers by the marketers.
Punch
It, therefore, asked the Petroleum Products Pricing Regulatory Agency and Ministry of Petroleum Resources to review the current price template of PMS with a view to bringing down the price of the product.The landing cost of the product today is N119.74k, while the distribution margin and other costs add up to N18.37k, bringing the total to N138.11k.However, marketers are allowed to sell petrol in the range of N140 and N145 per litre.But, on Tuesday, the House, acting on a motion moved by Mr. Abubakar Hassan-Fulata, noted that 90 per cent of the current cost of PMS (N124.34k) was introduced by factors that were unnecessary.It said the factors were related to transport charges, which were transferred to consumers by the marketers.
Punch
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