The Lubricant Producers Association of Nigeria (LUPAN), has petitioned the Vice President and Head, Economic Team, Prof. Yemi Osinbajo, over the demand for Administrative Charge of 10 Kobo per litre of base oil imported into the country.

The charge, being demanded by the Petroleum Products Pricing Regulatory Agency (PPPRA), is in addition to other arbitrary charges, dues, levies, fees and taxes by various unauthorised agencies. In a copy of the petition signed by the Executive Secretary, Emeka Obidike, on Sunday, the association decried that manufacturers are being tasked with multiple levies and charges, which are inimical to their business operations.

They condemned these illegal acts being carried out by some unauthorised agencies under spurious administrative jurisdictions, designations and initiatives, and the pain of having their consignment detained or confiscated, premises sealed, and business commitments compromised, despite being shown a genuine licence from the Department of Petroleum Resources (DPR).

He further complained about the lack of government intervention (subsidy), and favourable policies in the lubricant subsector. He cautioned that the multiple levies were capable of increasing the expenses and other ancillary costs connected to receiving the product, and significantly inflates the market cost of locally made lubricants making it less attractive than its imported substandard counterpart.

Source: The Guardian