LUPAN petitions PPPRA over ‘Administrative charges’

Post created on 9:56 am

The Lubricant Producers Association of Nigeria has petitioned the Petroleum Products Pricing Regulatory Agency, PPRA over the imposition of a new administrative charge. The charge which was N0.10 per litre was increased to N1.23 kobo.

LUPAN Executive Secretary, Mr Emeka Obidike in a petition addressed to the Vice President, Prof. Yemi Osibanjo, titled “Appeal for the Cessation of Administrative Charge of N1.23 kobo on Base Oil by Petroleum Products Pricing Regulatory Agency, PPPRA” stated:

“We once again, are constrained to appeal, with the utmost sense of urgency and deference to your distinguished self and office, for your intervention in facilitating the cessation of the demand for Administrative Charge of N1. 23 Kobo per litre of base oil imported, by the Petroleum Products Pricing Regulatory Agency (PPPRA), and the arbitrary licensing of base oil by unauthorized agencies.

“The Association has been besieged by series of complaints from its members of being tasked with the payment of levies, charges, dues, or the demand for certification or licensing, all on a single product- base oil, by various, and in some cases unauthorized Agencies under spurious administrative jurisdictions, designations and initiatives, on pain of having their consignments detained, premises sealed or confiscated and business commitments compromised, despite being shown a genuine DPR license.

Obidike stated that PPPRA demanded a N0.10 kobo per litre administrative charge of imported base oil in 2017 despite the association’s compelling argument “ that their duties as stated in earlier correspondence, were a blatant duplication of the powers and functions of the Department of Petroleum Resources, the primary regulator of the petroleum sector and its sub sector; that base oil, unlike other petroleum products attract a duty of five per cent and are not subject to pricing regulation, as there is no benchmark price, the same being determined by market forces, fluctuations in prices and exchange rates, grades, and country of purchase; that these charges will lead to an increase in the market price of locally blended lubricants, creating favorable market conditions for their imported finished counterparts.”

“Notwithstanding the above, consignments were held back and the business of operators was hindered as they were compelled to make said payment to avoid incurring needless expenses by way of demurrage. A further appeal was made for easing the process of registration, pending the receipt of a response from the Presidential Committee On the Ease of Doing Business and the Senate, which met with little response that proved ineffectual in alleviating the asphyxiating protocols and bottlenecks attending such a registration process.


“Operators have barely been able to keep up with the payment and processing of said cost, when to our utmost shock and consternation, a subsequent demand letter was issued reflecting the reviewed price, in the sum of N1. 23 per litre of base oil imported. That no formal communication was sent on the increment, rather operators were informed that the new rate will be communicated on the application for the processing of Quantity Notification.”

LUPAN Executive Secretary further added that: The government should come to the aid of legitimate businesses, by winding-up the PPPRA. The Government should also avail the sector its full support by way of viable accommodating industry-friendly policies, incentives, palliative, and intervention funds and in general foster encouraging fiscal conditions favorable the sector’s growth.”

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