FG considers petrol freight increase

The federal government is considering an increase in petrol freight from N7.51 per litre of the product.

The government gave the hint Thursday in Minna, adding that discussions were ongoing with representatives of organized labour to increase the rate to N9.11 per litre in order to enhance the revenues of transport owners.

Speaking at the 21st Annual General Meeting (AGM) of the National Association of Road Transport Owners (NARTO), in Niger State, the Executive Secretary of the Petroleum Equalisation (Management) Board (PEF), Mr Ahmed Bobboi, noted that what was delaying the implementation was the federal government’s approval as well as labour’s input on the issue.

According to him, the development will amount to 21.30 per cent hike in freight, that is, the Petroleum Products Pricing Regulatory Agency (PPPRA) component of the total cost of petrol.

Bobboi also revealed that the federal government was expecting the labour unions to revert to it on the agreement it reached with the joint committee set up to negotiate the hikes in petrol and electricity prices.

“Two days ago, labour requested for three weeks, for them to go and study the technical report so that when they agree with the technical report, they will come back and then get approval. So, we pray that labour will do what’s needful,” he stated.

Also, the Nigerian National Petroleum Corporation (NNPC) Group Managing Director, Mallam Mele Kyari said upon the conclusion of the deliberations with labour, the government would announce the effective implementation date in line with the pricing template.

Kyari was represented by the Chief Financial Officer, NNPC, Mr Umar Ajiya, at the event which was attended by major stakeholders in the petroleum sector.

Kyari added: “The Executive Secretary of PEF made a statement that there is ongoing engagement between the federal government and the labour, and at the end of that process government will make an adequate pronouncement as to the effective date of that figure as contained in the pricing template”.

The GMD also lauded NARTO for continuing to work despite the daunting challenges in the country.

“We are not unaware of the conditions of our roads, the insecurity, the highways, and also a number extortions do take place along these highways,” he told the union.