The Coalition for Energy Reforms and Good Governance Advocacy has called on the Federal Government of Nigeria to eliminate what it termed “hidden levies and charges” on Premium Motor Spirit (PMS) sourced from the Dangote Petroleum Refinery.
This, the coalition claims, is the first step towards ensuring that locally refined petrol becomes more affordable for Nigerians.
In a statement made on Sunday, Executive Director of the coalition, Jonathan Amanda, expressed concerns over the recent hike in fuel prices, sparking questions from citizens who expected lower costs given that the product is now locally refined.
The pump price of petrol, which has surged across the country, is causing distress among consumers who had hoped that local refining would bring relief from the volatility of international crude prices.
This issue has raised fresh debates about the pricing mechanisms tied to the Dangote Refinery, particularly concerning the role of the Nigerian National Petroleum Company Limited (NNPCL).
The Coalition asserted that “hidden levies” are contributing to the inflated cost of petrol and must be addressed if Nigerians are to enjoy the benefits of local fuel production.
“Removing these hidden levies on petrol sourced from Dangote Refinery is crucial,” Amanda said, “especially considering that the cabal that once profited from subsidies is now exploiting secret levies on fuel.”
The group emphasised that the levies, imposed under various guises, from inspection fees to margins overseen by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), were unjustified.
The Coalition particularly highlighted additional charges from the Nigerian Maritime Administration and Safety Agency (NIMASA), claiming these costs, which were applied to the crude supply chain, had no place in the pricing of locally refined petroleum products.
According to the group, removing these hidden charges could lower the price of petrol to N400 per litre, making fuel more accessible to the average Nigerian.
“The current levies inflate the cost of locally produced fuel, leaving the public to bear the brunt of costs that should not be there in the first place,” the statement read.
The Coalition urged the government to conduct a thorough review of all levies imposed along the value chain of petroleum product production and supply.
It also called for transparency in revealing the true impact of these levies to the public.
Amanda stressed that if the government prioritised the removal of unnecessary charges, it would alleviate the financial pressure on households and businesses, especially given the removal of subsidies earlier this year.
As Nigeria continues to navigate its post-subsidy economy, transparency in fuel pricing and a reduction of bureaucratic levies could be critical to ensuring the affordability of energy for the population.
The Coalition’s call for reform comes at a crucial time, as the nation seeks a balance between sustaining local refineries and protecting its citizens from the ripple effects of rising fuel costs.
This piece was written by Affiong Bassey
