The pump price of petrol may be witnessing an increase as FG is set to add
to it, strategic reserves’ financing cost.

There could be a further increase in the retail pump price of petroleum
products like petrol, kerosene and diesel.

This is due to the Federal Government’s proposal of the addition of the cost
of managing the national strategic stocks of petroleum products to the retail
price of the commodities.

According to a report from Vanguard, this proposal is contained in the 2020
Petroleum Industry Bill (PIB) which is currently before the National
Assembly for passage.

This means that the passage and subsequent signing into law of the PIB,
will lead to further increase in the pump price of petrol. Other things being
equal, as the cost of managing the national strategic fuel stocks would, from
then, form an integral component of the pricing template of petroleum
products and would determine the pump price of the commodities.
Other current components of the pricing template, apart from the landing
cost include the National Transportation Average (NTA), the Nigeria Ports
Authority (NPA) charges, marketers margin and transportation costs.
In the new PIB that is before the National Assembly, the new Nigerian
Midstream and Downstream Petroleum Regulatory Authority that would
emerge from the scrapping of the Petroleum Products Pricing Regulatory
Agency (PPPRA) and the Petroleum Equalization Fund (PEF), is to be
saddled with the responsibility of setting up and managing the national
strategic stocks of petroleum products.

The new agency would determine the amount to be charged as a levy for
financing the strategic petroleum products’ reserves. Which would form part
of the retail price of each of the petroleum products, and also mandate to
work with security agencies in deciding areas of the country where the
national strategic stocks would be maintained and distributed. The 2020
PIB partly reads;

“ The Authority shall: establish, administer and ensure the storage
and distribution of the national strategic stocks of petroleum
products in accordance with regulations issued by the Authority.

Determine and publish the amount to be charged as a levy for the
financing of the national strategic stock, which shall form part of
the retail price of each petroleum product, such levy to be
determined as a percentage of the retail price and be deducted on
a wholesale basis; and

Designate, in consultation with the appropriate authorities and
national security agencies, the strategic locations across the
country where the national strategic stocks shall be distributed
and maintained.”

The PIB is also proposing that facilities and infrastructure which are to be
specifically defined by the soon-to-be-established Nigerian Midstream and
Downstream Petroleum Regulatory Authority for the storage of national
strategic stocks would be exempted from the provisions of the law relating
to open access.

The other functions of the Nigerian Midstream and Downstream Petroleum
Regulatory Authority in the new PIB include; regulating and monitoring
technical and commercial midstream and downstream petroleum operations
in Nigeria, and determining appropriate tariff methodology for processing of
natural gas, transportation and transmission of natural gas, transportation of
crude oil, and bulk storage of crude oil and natural gas.



https://nairametrics.com/2020/10/25/petrol-price-to-increase-further-fg-to-add-strategic-reserves-management-cost/

there's nothing anyone can do again, even if you protest they'll over run you with hoodlums.

Not surprised, ever since BUHARI took up the job as the petroleum minister...

The price has never ever EVER COME Down..
That's how Bad He Is...

Not surprised...
Are You??....
BUHARI Never fails to Surprise US.. that's what we get when, old men continues ruling...

Which one is "strategic reserve management cost" again?

The next level of suffering is unprecedented.Nigerians are yet to recover from the effect of their self-inflicted recession before COVID19 sets in.Now after smarting from Coronavirus, the #EndSARS protests and now back to fuel increment.

O set go.

Hardship upon hardship

hisgrace090:
there's nothing anyone can do again, even if you protest they'll over run you with hoodlums.

Lol.. the hoodlums would first handpick the politicians like they have been doing recently..

hisgrace090:
there's nothing anyone can do again, even if you protest they'll over run you with hoodlums.

No there is something Calabar- youth showed Nigerians - raid and loot their houses.


The next protest is coming by the 1st quarter of 2021.

The youth now know their targets.

Before nkor

What ever, we the Yorubas have economic advantage

Okay, at this point, only God can safe us

Yobabad:
What ever, we the Yorubas have economic advantage

Oh okay....

More blows for the common man

A bag of Nigerian made rice is 38k now,
Before mid 2021 it must have gotten to 45 - 50k.

Nigerians una never see anything yet. Hunger and poverty go kill una finish. Una must get sense for this country.

Shey una dey shout sai baba? Shey una vote Buhari again? Ok Na.

Shey Buhari daughter don't jet out to go born pikin?

Why dubai? How much was budgeted for Aso Rock clinic since 2016 till date?

Buhari has not started dealing with you guys.

As for people like me, that warned you about the calamity and disaster called Buhari, we are not disappointed, we have been ruggedized for the worse from Buhari because We expected nothing from the cattle rarer.

2015 and 2019 will continue to hunt you till 2023!

The people no dey hear word, na devil be their papa.

The people no dey hear word, na devil be their papa?

It seems these guys have empty skulls

I wish them the best

E still dey shock una?

Okay now

This is why the endsars protest should have ended when the govt announced the Dissolution of Sars...now we have lost the edge of protest because no protest will be condoned neither will it have mass appeal for the next 5 years

Make dem kuku put am for #200...make we rest jare.....let me design your logo, flyer, banner at affordable price...please get my contact from signature

The zoo must fall

the second wave of inflation loading. perhaps they are looking for money to Increase police salary.

before December a bag of local rice would be 45k. and a sachet of tomatoes paste would be 250N.

Which one is "strategic reserve management cost" again?

MagicBishop:


No there is something Calabar- youth showed Nigerians - raid and loot their houses.


The next protest is coming by the 1st quarter of 2021.

The youth now know their targets.

After causing destruction, your peaceful hoodlums will later come out to deny it.