Low oil price: PENGASSAN wants DPR 4% collection cost increased
Oil workers under the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), Department of Petroleum Resources (DPR) branch have called for an upward review of the four per cent cost of revenue collection for the department.
Immediate past president of PENGASSAN DPR branch, Comrade Amba Ndoma Egba, made the call in a farewell speech at the union’s triennial delegates’ conference held in Abuja recently.
Egba said the dwindling oil prices has made this receivable amount to become insufficient in catering for the DPR’s operations, with an upward review inevitable.
Former President Goodluck Jonathan had last year approved the retention of four per cent cost of collection by the DPR. The approval meant that the agency will retain four per cent of the revenue it collects on behalf of the Federal Government rather than depend on budgetary provisions for its operations.
The DPR is empowered by the Petroleum Act of 1969 as amended, to collect royalties on producing concessions on behalf of the Federal Government.
The Director of the DPR, Mr. Mordecai Ladan, in his address, admitted that though the department has had it rough, especially in the area of funding, it has achieved a lot with the understanding of the union.
He said it was the contribution of the association towards better funding of the DPR since its excision from the NNPC in 1988 that led to the approval of the 4 per cent cost of collection for the DPR in 2014.