Monday, June 19, 2017

NNPC Crashes Price Of Diesel Across Nigeria By 42 Percent

Mr Ndu Ughamadu, the group general manager, public affairs division of the NNPC on Sunday, June 18 said it had crushed the price of diesel by 42 per cent.

In a statement in Abuja, Ughamadu said diesel also known as Automotive Gas Oil (AGO), had a huge down-slide over the last six months, following key strategic interventions by NNPC.

Checks revealed that with the new move, the price of AGO per litre will now go for N175.

The Maikanti Baru-led NNPC initiated key strategic intervention that led to the price crash.

“In the first quarter of 2017, retail prices of AGO, which is one of the deregulated products, shot to an all-time high of N300 per litre in major demand centres across the country.

“Such unpleasant situation placed a huge burden on truck drivers, who need the product for transporting their vehicles; and the nation’s manufacturing sector, which requires it to run its operations.

“It also affected the masses, who need it for household power generation.

“However, following strategic intervention efforts by the NNPC toward sustained improvement in the supply of diesel, the product’s retail prices as at the end of May ranged from N175 to N200 across the country (a significant price drop of about 42%).

“Ex-depot prices also dropped to between N135 and N155,” Ughamadu said.

He explained that some of the corporation’s strategic interventions include improving the supply of AGO and remodeling of the product distribution to address sufficiency issues across the country.

“Since January this year, we have worked very hard with relevant stakeholders to improve distribution from refinery depots, by implementing a robust loading programme.

“The corporation was able to resuscitate its critical pipelines and depots in places such as Atlas Cove-Mosimi, Port-Harcourt Refinery-Aba and Kaduna Refinery-Kano.

“Efforts are also ongoing to revamp and commission other critical pipelines across the country,” he said.

The spokesman noted that another key intervention that enhanced supply and distribution of diesel was the corporation’s “robust engagement” with critical downstream stakeholders where salient issues were raised and duly addressed, NAN reports.

“These stakeholders include: Major Oil Marketers Association of Nigeria (MOMAN), Nigerian Association of Road Transport Owners (NARTO), Petroleum Tanker Drivers (PTD) as well as Independent Petroleum Marketers.

“Furthermore, as a result of consistent positive engagement with the Central Bank of Nigeria (CBN), NNPC equally extended the expansion of Premium Motor Spirit (PMS) Foreign Exchange Intervention Scheme to accommodate Diesel and Aviation Fuel.

“The general public is hereby assured that the corporation wil continue to ensure seamless supply and distribution of diesel and other petroleum products across the country,” Ughamadu said.

Like fuel, diesel scarcity also impacts on the society as it is widely used

In a related development, media reports suggesting that a Senate committee recommended a 5 naira fuel levy on every litre of petroleum or diesel is false.

It was gathered that what the Senate committee did was to canvass for the sustainable maintenance of roads from the pricing template of petroleum products.

At the public hearing on the National Roads Fund Bill, stakeholders were unanimous on the need to access a percentage of the funds for the sustainable maintenance of roads from the pricing template of petroleum products.

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