The motion which seeks to increase pump price of Premium Motor Spirit (PMS) was stepped down by the House of Representatives during the Tuesday plenary session.
The resolution was passed due to the absence of the sponsor of the motion, Danlami Kurfi (APC-Katsina).
According to the motion titled: ‘Call on the Nigerian National Petroleum Corporation Retail to adjust the cost prices of products to Independent Marketers,’ Kurfi noted that “in 2007, the NNPC Retail Ltd entered into an Agreement with Independent Marketers for the distribution and sales of petroleum products;
“Also notes that the terms of the NNPC Retail-Independent Marketers’ Agreement required the Marketers to stock products from NNPC Retail sources only so they do not have to buy products from third parties;
“Observes that while the cost prices of NNPC Retail products have increased over the years, the profit margin of N2:50k only has been maintained between the cost price of N142:50k for Premium Motor Spirit (PMS) and the regulated pump price of N145:00k at which all Independent Marketers must sell the product to the public;
“Convinced that the profit margin to the Independent Marketers is very slim considering the overhead costs of delivering service to the public, including but not limited to the costs of sales personnel, diesel for power generation, payable taxes and other administrative costs;
“Concerned that if the prevailing circumstances do not change, it may lead to Independent Marketers resorting to reducing or cancelling the Agreement with NNPC Retail, thereby causing product scarcity with the attendant crisis in the distribution chain of petroleum products.”
To this end, he urged the House to “urge the Group Managing Director of Nigerian National Petroleum Corporation and the Managing Director of NNPC Retail in particular to urgently conduct a review of the situation with a view to recommending and approving a more profitable margin for Independent Marketers to forestall any crisis in the marketing and distribution of petroleum products.
“Mandate the Committees on Petroleum Resources, (Downstream) and Legislative Compliance to monitor and ensure compliance.”