Tag Archives: Cargo

NNPC May Adjust Petrol Pump Price On Falling Cargo Rates- Report

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The Nigerian National Petroleum Corporation (NNPC) may undertake a downward review of the pump price of petrol in its retail outlets across the country.

It was gathered from an authoritative source within the corporation in Abuja that this was possible from a reported consistent drop in the historical price of petroleum cargoes from about $600 per metric tonne to an average of $440 per metric tonne.

NNPC had recently adjusted the pump price of petrol at its outlets, thus raising fears of a possible hike. The development also followed claims in August by its former Group Managing Directors that the government’s pricing modulation framework was not economical for the downstream petroleum business.

The source however stated that the cargo price is one of the key elements often considered by the Petroleum Products Pricing and Regulatory Agency (PPPRA) in its calculation of the template for petrol pump price.

This, he noted, has been on the downward trend and could necessitate the corporation reviewing its pump price to reflect the market realities. The other key element being the foreign exchange has been left floating by the Central Bank of Nigeria (CBN).
He also explained that the corporation has spent a lot of energies securing its petrol supplies and distribution networks to keep the country from what he described as system sabotage during the yuletide season by some marketers.

“One of the things we wanted to achieve is to ensure that we do not have queues in this time of the year and a lot of the energies have been spent on securing that. If you look at the market trend at the moment, we have been fortunate. Historically, it is this time of the year that cargo prices are about $500 to $600 per metric tonne, and this is one of the two key elements on the PPPRA templates that nobody controls – it is down to market forces,” he said.

According to him, “The cargo price is usually between $500 and $600 per metric tonne, but this year, we have even had cargoes for $440. The pricing has been good. Our network is a mix of the NNPC and others, because of the open market forex policy, the cost of doing business for others is higher. What NNPC retail has done is to adjust the price to accommodate the additional expense of doing business around this time of the year
“The N145 per litre is not just the margin but includes freights and all sorts of other expenses; we did that to accommodate the expenses and as we get cheaper and cheaper cargoes, we will adjust our prices in accordance.”

Read More: thisdaylive

FAAN woos cargo operators, others to Enugu Airport

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The Federal Airports Authority of Nigeria has urged airline operators, service providers and the business community to take advantage of the new freight opportunities now available at the Akanu Ibiam International Airport, Enugu.

The authority’s invite is on the heels of international cargo operations that has since commenced at the Enugu airport with weekly flight by Ethiopian Airlines.

In a related development, the Managing Director (MD) of FAAN, Saleh Dunoma, has urged workers in airports across the country to rededicate themselves to place FAAN at the highest pedestal and among organisations that have excelled against all odds.

Dunoma said that the new export window provides opportunities for start-ups and cargo related businesses especially in perishable and non perishable produce.

He said: “This will enable our people participate in the export market, earn foreign exchange and contribute to the GDP of the country,” adding that FAAN has put in place, processes and procedures to sustain its commitment to safety, security and passenger comfort.

Speaking at the 2016 annual performance review meeting of the directorate of commercial and business development held in Calabar, Cross Rivers State, the MD noted that the dwindling fortunes arising from the negative impact of the present economic realities is a wake-up call on all to respond to President Muhammed Buhari’s charge to “think outside the box”.

Dunoma said: “There must be a major paradigm shift in our business model. This will provide us the opportunity to collectively carry out a forensic audit of our activities, processes and values in the pursuit of our vision to be amongst the best airport groups in the world.”

He charged participants to evolve new and efficient measures to improve on non-aeronautical revenue sources while attaining best practices in service contract with its stakeholders.

“My expectation is that attention will be given to the critical areas of commercial operations targeted at the urgent optimisation of revenue performance, enhanced work processes, and substantial decline in revenue losses,” Dunoma said.

Acting Director of Commercial and Business Directorate, Tito Okpaise, said the retreat, with the theme, “Fortifying processes for sustained growth” was meant to renew commitment, determination and zeal of staff to deliver beyond expectations.