Fuel price: Reps summon Kyari, marketers, want mass transit scheme revived

Fuel price: Reps summon Kyari, marketers, want mass transit scheme revived 

The House of Representatives has shut down a motion seeking to stop marketers from selling petrol at the new pump price.

The Reps rather resolved to investigate the hike by summoning NNPCL Group Chief Executive Officer, Mele Kyari, and the managements of oil marketing firms.

The House also advised the Federal Government to revive its public mass and urban transit scheme to ease the transportation problem arising from the fuel price hike.

The Nigerian National Petroleum Company Limited on Tuesday raised the petrol pump price from N488 to N617/litre, attributing to prevailing market forces.

The Reps also asked its ad hoc committee to propose palliatives to ameliorate the sufferings of Nigerians.

The sponsor of the motion, Ikenga Ugochinyere, asked that Kyari and oil marketers be invited by the committee to explain what led to the increase.

Ugochinyere said that Section 88 (1) and (2) of the 1999 Constitution empower the National Assembly to conduct investigations into the activities of any authority executing or administering laws made by the National Assembly.

He added that Section 32 of the Petroleum Industry Act, 2021 saddles the Petroleum Midstream and Downstream Regulatory Authority with the task of regulating and monitoring technical, commercial midstream and downstream petroleum operations in Nigeria.

The lawmaker reminded his colleagues that the NNPCL on Tuesday increased the pump price of petrol from N537 to N617 in Abuja and other parts of the country.

During the debate on another motion, the House advised the Federal Government to revive its public mass and urban transit schemes to make the cost of commuting cheap.

It said this could be done through public and private partnerships.

The House also resolved to probe the failure of the schemes in the past.

The decision followed a motion sponsored by Olumide Osoba, Kama Nkemkanma and Princess Miriam Onuoha.

Osoba, who presented the motion, said the cost of transportation across the country had tripled due to the removal of subsidy.

Major Oil Marketers Association of Nigeria (MOMAN) said that international price of crude oil and exchange rate constitute over 80 per cent of cost of imported fuel.

It explained that the remaining 20 per cent is made up of statutory dues, distribution costs and margins.

MOMAN, while reiterating its support for the deregulation of the oil and gas sector, said the policy promises a transparent and level playing field.

It added in a statement after its virtual meeting that in a liberalised market, the pump price of petrol should accurately reflect current economic realities.

The statement by MOMAN Chairman, Olu Adeosun, partly read, “In recent months, the price of PMS has remained relatively stable. On 30 May 2023, Platts reported a price of $827 per metric ton (MT), and on 14 July 2023, it was $859.25 per MT.

“However, there has been a significant increase in foreign exchange rates. “MOMAN can infer from its calculations in May that the NNPCL determined its pump price using an exchange rate of about N630 to the US dollar, while banks reported an exchange rate of approximately N650 on the Investors and Exporters (I&E) window.

“As of today, the liquid exchange rate is close to N825 to the dollar. This devaluation adds N100 to the cost of importing a single litre of PMS.

“Consequently, an increase in the pump prices of petrol should be expected.”