The Nigerian Labour Congress (NLC) may have won a war over fuel subsidy removal, but the Federal Government, through the Nigerian National Petroleum Corporation (NNPC) has introduced a new N500,000 Ship to Ship (STS) Coordination Charge for each trans-shipment operation of petrol involving the corporation logistics.
Investigations reveal that a point of serious concern to marketers is that while NNPC Limited and its business units, which are also ‘Limited’ are recovering all their costs by passing same to marketers, there is no approval for marketers to pass the same costs to the pump buyers even as they cannot absorb the costs.
In a letter issued by NNPC to marketers 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, says, “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 transhipment operation involving NNPC Marine Logistics.
“This amount is to cover manpower and logistics required for coordination and production of cargo documents for the transhipment 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 trans-shipment 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.”
“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.”
Investigations revealed that the process of treating the off-spec PMS is on-going as advised by chemists and analytical laboratories as sludge extracts are being processed and disposed off without any harm to the environment.
The source, however, said that the Petroleum Products Marketing Company (PPMC) brings in cargoes for above process and for distribution to the buying public but they need to do much more.
“For instance, a newly introduced cost is the bill of N500,000 imposed on marketers by NNPC for the ‘daughter vessel’ Bill of Lading/co-ordination fee.
“Prior to now, marketers charter NNPC vessels and pay in Naira however we are now forced to source US dollars to pay for the charter of NNPC vessels; this is separate from the costs of fenders and other ancillary costs now separated from vessel charter cost which marketers now bear but which we have no approval to pass on to the pump.
“NMDPRA and NNPC have both stated the FG’s reluctance to review pump price but since they have passed them to marketers, the latter will reflect it either ex-depot or at the pumps.
“Marketers are business owners who mostly operate on bank loans and we too must recover all costs,” the source stated.