The Nigerian National Petroleum Corporation, NNPC, has allayed fears over insinuations that the recent increase in the bridging allowance to transporters from N6.20 to N7.20 was a ploy towards increasing the pump price of petrol.
A statement in Abuja by the Group General Manager, Public Affairs, Mr. Ndu Ughammadu, noted that instead of the speculated increase in the pump price, the N1.0 increase in transporters’ allowance would be swallowed in the existing pricing template to maintain existing pump price ceiling.
His words, “NNPC wishes to assure consumers of Premium Motor Spirit, PMS, otherwise known as petrol that the review of bridging cost would not lead to increase in the price of the white product.
“The review of the bridging allowance which enjoyed the blessing of the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, would be absorbed in the existing products import template”.
Ughammadu stated that the National Union of Petroleum and Natural Gas Workers, NUPENG, had suspended its nationwide strike April 3, 2017 following the timely intervention of the Group Managing Director of the Nigerian National Petroleum Corporation, Dr. Maikanti Baru.
He said Baru’s intervention prevented the logjam from the faceoff between the National Association of Road Transport Owners, NARTO, and Petroleum Tanker Drivers, PTD, over cost of doing business, among others.
Baru had disclosed at the end the meeting on Monday that, “We understand the difficulty of NARTO to go into negotiations with PTD which has to do with the level of bridging allowance.
“I am happy to announce that the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, has given his approval to increase the bridging allowance from N6.20 to N7.20”.
He said the review should give NARTO the breathing space to engage with PTD to immediately discuss and resolve as many of the issues as possible.
He pointed out that the gesture was expected to normalize relations between the unions.
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