FG Mulls Fresh Hike In Fuel Price

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The Federal Government has commenced discussions with representatives of the organised labour on how to raise the freight rate of the Premium Motor Spirit (PMS), otherwise known as petrol, from N7.51 per litre to N9.11 per litre.

This implies a 21.30 per cent hike in freight rate, which is a component of the total cost of petrol under the template of the Petroleum Products Pricing Regulatory Agency (PPPRA).

This increase in freight is expected to affect the total calculation (price of fuel) unless there is an equivalent reduction in other cost elements.

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Executive Secretary, Petroleum Equalisation (Management) Board (PEF), Alhaji Ahmed Bobboi , made this known at the 21st Annual General Meeting (AGM) of the National Association of Road Transport Owners (NARTO) held at the Zuma Rock Resort, Niger State.

He said the agency was waiting for the Federal Government approval before it would begin the implementation of the new freight rate of N9.11 per litre.

He added that the Federal Government was expecting the labour unions to revert to it on the agreement it has taken from the joint committee set by the government on the hike in the price of petrol and electricity.

Asked to comment on the implementation of freight increase, Nigerian National Petroleum Corporation (NNPC) Group Managing Director (GMD) Malam Mele Kyari said upon the conclusion of the deliberations labour, the Federal Government will announce the effective date in line with the pricing template.