NNPCL Under Fire To Remove ‘Hidden Levies’ On Dangote Fuel Prices

The Nigeria National Petroleum Company Limited (NNPCL) has been urged to remove unnecessary charges that are inflating the cost of fuel supplied by Dangote Refinery in the country.

A group known as the Coalition for Energy Reforms and Good Governance Advocacy said the removal of the charges could make the pump price of petrol drop to about ₦400.

In a statement released on Sunday, 13 October signed by its Executive Director, Dr Jonathan Amande, the group argued that there are levies imposed on locally produced petrol distributed in the country that are not justified.

According to it, the levies include Nigerian Maritime Administration and Safety Agency (NIMASA) fee, inspection fee, margin and Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) fee.

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The group’s call comes in the wake of fresh petrol price hike.

NNPCL had last week increased the pump price of petrol in its retail outlets from about ₦897 to over ₦1,000 depending on locations. Other fillings owned by independent marketers are selling at higher prices with prices going above ₦1,600 in some parts of the country.

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The fresh petrol price hike has elicited reactions from the residents who are still reeling from the impact of the previous increases within the last 18 months.

With the commencement of local production of petroleum products, Nigerians had expected the prices of petroleum products to drop to affordable rates, making many question the reason for the high cost of the commodities.

The group in its statement contended that the levies were responsible for the high cost, adding that they should not be imposed on locally produced petroleum products.

It said: “These invisible government levies, including those from the Nigerian Maritime Administration and Safety Agency (NIMASA), are unjustified and inflates the cost of locally produced fuel.

“These levies, which have no place in the local production and sale of petroleum products, prevent the Dangote Refinery from selling fuel at more affordable prices.”

“Without these additional charges, some of which are layered on the crude supply, local refineries could potentially sell fuel at prices as low as ₦400 per litre,” the Coalition added.