Why implementation of 20% hike in freight cost is delayed – PEF

By Godswill Odiong

THE Executive Secretary of the Petroleum Equalisation Fund, Ahmed Bobboi has attributed the delay in the implementation of 20 per cent rise in the cost of transporting premium motor spirit, petrol, in pricing template to an ongoing negotiation between the Federal and Government and Labour Unions.

Addressing journalists in Abuja, Bobboi explained that although a temporary solution has been agreed on, the full implementation of the increase was waiting for an agreement between the government and labour over a new pricing template for petrol.

 He stated: “If it is working well for petrol, we said well government wants to promote the use of gas if we can extend that scheme to gas we believe that it will add value to the economy in so many ways in the value chain.

“It will help in getting the consumers in those areas to accept the usage of gas and abandon the age-long use of firewood in cooking with its attendant problems and challenges including health hazards and deforestation which causes a lot of problems in the country.

“It will also make the product available because we have it in abundance in the country. It also makes it affordable to the people because if you incentives the marketer by paying for his transportation to take it to the last mile, the consumer will also be incentives because the marketer will bring down his price so that it will be affordable and accessible to the consumer.”