PPPRA Secretly Adds N1.23k to A Litre of Petrol

PPPRA Secretly Adds N1.23k to A Litre of Petrol

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Nigerians now pay N1.23 extra on every litre of Premium Motor Spirit (PMS) also known as petrol as administrative charge.

 

The admin charge was N0.10 per litre before the hike. Producers of petroleum products, particularly lubricants, who gave this hint in petition to the Vice Presi-dent, Prof. Yemi Osinbajo, accused the Petroleum Products Pricing Regulatory Agency (PPPRA) of causing indirect hike in prices of petrol and other products across the country.

 

 

The PPPRA, it was learned, has begun implementation of this over 1,100 per cent hike in administrative charges on products, a move that made it rake in about N1.845 billion from buyers of petrol in just one month.

 

The downstream subsector has been deregulated, but Lubricant Producers Association of Nigeria (LUPAN) declared that on every litre of petrol consumed in Nigeria, consumers are still charged N1.23 as administrative charge for PPPRA.

 

 

This, which amounts to double taxation, according to LUPAN, also affects base oil. Nigeria, latest data from the Nigerian National Petroleum Corporation (NNPC) shows, consumes about 50 million litres daily, a payment of N1.23 as administrative charge per litre translates to N61.50 million daily and N1.8 billion in 30 days.