New Fuel Price Increase Underway as NNPC Imposes N500k Levy on MarketersYour support matters. Sustain independent journalism in Nigeria – contribute to Legit.ng. As the fuel scarcity in different parts of Nigeria linger for over three weeks, major marketers have jettisoned the official pump price of 162 and 165 per litre and sell for between N170 and N600 in some parts of the country. And a new levy on trans-shipment may push the price further up when supply comes back in full. The Nigerian National Petroleum Corporation (NNPC) has raised a N500,000 Ship-to-Ship Coordination Charge on every imported refined petrol trans-shipment which involves NNPC Marine Logistics. Recommended for you "Davido, please say something": Lady cries frantically as singer comes onli... The new levy is part of the initiatives the NNPC is introducing to completely recover operating costs since the Petroleum Induction Act (PIA) was signed into law making it a limited liability company. PAY ATTENTION: Subscribe to Digital Talk newsletter to receive must-know business stories and succeed BIG! The move has made owners of depot to hike depot prices of petrol to between 162 and N172 per litre instead of the approved price of between N142 and N145. TheNiche report said that the new price may cause the independent oil marketers to increase prices as they operate about 90 per cent of the filling stations across Nigeria. According to The Punch, the new N500,000 trans-shipment cost by NPPC has led to an increase in ex-depot price. In a letter dated February 18, 2022, the NNPC wrote to all marketers explaining that the new charge would cover the costs of manpower and logistics, among many others Recommended for you Banks begin payment of old naira notes to customers, set withdrawal limits... The NNPC said: In another letter dated February 9, 2022, the Marine Logistics General Manager wrote to marketers explaining the functions of Marine Logitsics company, which is a subsidiary of the NNPC. The letter which was signed by Asuquo Inuikim said that third-party marketers who do not hire Marine Logistics are exempted from the new levy. Recommended for you Supreme Court vs FG: Strike looms as NLC issues fresh ultimatum to Buhari o... Depot owners have criticised the new move by the NNPC. Legit.ng has reported that the management of MRS Oil Nigeria Plc has cleared the air on how the Nigeria Petroleum Corporation brought bad fuel into the country which is causing scarcity and an increase in the cost of transportation. MRS also dissociated itself from reports making the rounds on social media that it is responsible for the contaminated product in Nigeria and the company is a responsible corporate citizen who will not go out of its way to harm other citizens. According to MRS, the NNPC is the sole importer of PMS into Nigeria and the NNPC, through their trading arm, Duke Oil, supplied a cargo of PMS bought from an International trader. Litsaco and delivered it with Motor Tanker (MT) Nord Gainer. Source: Legit.ng A new levy being introduced by the Nigeria National Petroleum Corporation (NNPC) may cause fuel price increase Nigeria has been battling scarcity of petrol for the past three weeks and consumers fear the new levy may worsen issues The NNPC said the new levy is introduced so as to offset the cost of Trans-shipment costs incurred by its subsidiary, Marine Services Limited Your support matters. Sustain independent journalism in Nigeria – contribute to Legit.ng. Subscribe to Digital Talk newsletter to receive must-know business stories and succeed BIG! Legit.ng “Please be informed that the NNPC management has directed that effective February 10, 2022, the sum of N500,000 will be charged for STS Coordination fees for each transshipment operation involving the NNPC Marine Logistics. “This amount is to cover manpower and logistics required for coordination and production of cargo documents for the transshipment operation,” said the letter, which was signed by O.I.O. Ajilo for NNPC Group General Manager, Shipping. “A Remita payment request will be generated by our accounts section for each operation to effect necessary payment upon the vessel’s tendering Notice of Readiness. Thank you for your anticipated cooperation and understanding.”