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Fuel pump price to rise as NNPC introduces new charges

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3 years ago

February 22, 2022

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Nigerians may be paying more for fuel following the decision of the Nigerian National Petroleum company Limited to introduce a fresh marine charge for marketers in the country.

In a letter issued by NNPC to marketers, NNPC announced a new N500,000 Ship-to-Ship Coordination Charge for each transshipment operation of petrol involving the NNPC Marine Logistics.

The letter with Ref. NNPC/ML/STS01, dated 18th February, 2022, and addressed to all marketers, with the title, “Payment of STS Coordination Charge” signed by O.I O Ajilo on behalf of GGM Shipping, read thus:

“Please be informed that the NNPC Management has directed that effective (from) 10th February, 2022, the sum of N500,000 only will be charged for STS Coordination fee for each transshipment operation involving NNPC Marine Logistics.

“This amount is to cover manpower and logistics required for coordination and production of cargo documents for the transshipment operations.

“A remita payment request will be generated by our accounts section for each operation to effect necessary payment upon the vessels tendering notice of readiness (NOR), thank you for your understanding” NNPC said in the letter.

In another document titled, “Commencement of STS Coordination Charge,” which was from the General Manager, Marine Logistics, to marketers, with reference GGM/ML/04, and dated February 8, 2022, the national oil firm explained the functions of Marine Logistics.

It said its functions were to coordinate ship-to-ship transhipment activities for the Pipelines and Products Marketing Company, NNPC Retail Limited and third-party marketers, as well as facilitate the processing of clearances for shuttle vessels and preparation of Bill of Lading on completion of STS.

Marine Logistics, PPMC and NNPC Retail Limited are subsidiaries of the national oil company.

The document, which was signed by Asuquo Inuikim, read in part, “Kindly recall that customers (PPMC, NNPC Retail and third-party marketers) who hire ML (Marine Logistics) vessels for STS and discharge operations are charged STS fees which is included in the vessel freight. However, third-party marketers who do not hire Marine Logistics vessels are serviced free.”