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The House of Representatives has mandated its Committee on Petroleum Downstream to investigate the practice of price discrimination of petroleum distribution by Petroleum Products Marketing Company Limited and Petroleum Products Pricing Regulatory Agency (PPRA)
The committee has a mandate to investigate company which is a subsidiary of the Nigerian National Petroleum Corporation saddled with the responsibility of coordinating the distribution of petroleum products in the downstream sector of Nigeria’s petroleum industry.
The decision to investigate the matter followed a motion moved by Odebunmi Olusegun and Abubakar Fulata on on Tuesday.
Moving the motion, Olusegun noted that the PPMCL and PPPRA are selling PMS to Major marketers and independent marketers at N125.65k per litre and N133.28 per litre respectively.
Olubunmi said that this practice is causing distortion in the market since the two are operating in the same market.
“The two blocks of marketers in the downstream sector of the nation’s petroleum industry, namely the Major Marketers and the Independent Marketers.
“The Petroleum Products Marketing Company Limited, being the coordinator of petroleum products distribution in the downstream sector, is selling the Premium Motor Spirit (PMS) to the two blocks at different prices, selling the Premium Motor Spirit (PMS) to Major Marketers at N125.65k per litre and selling to the Independent Marketers at N133.28 per litre.
He expressed concerns, “that since members of the two blocks are selling the products to retailers in the same market, the discriminatory prices have been affecting the participatory capacity of the Independent Marketers in the market as well as impoverishing them against their counterparts in the sector.”
He noted that the investigation will “check the discriminatory practices of the Petroleum Products Marketing Company Limited in order to give all concerned marketers a sense of belonging.”
Speaking on the motion, Muhammed Wudil said that the uniformity of the price would help to reduce pump price of petroleum.
“I think if the Independent marketers are given N125 rate, we can be getting it at cheaper rates.”
The committee has four weeks to conclude and submit a report to the House.