FG Planning Another Petrol Price Hike ….As NNPC Says Current Price Not Sustainable

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Yemisi Izuora

Another petrol price hike may be in the offing as the Nigerian National Petroleum Corporation, NNPC which is the sole importer of the product is complaining about the price regime.

The Group Manager,Crude Oil Marketing of the Nigerian National Petroleum Corporation(NNPC),Mr. Mele Kyari, today in Lagos indicated that the nation’s difficult business environment may make it difficult to sustain the current pump price of fuel.

Kyari who spoke at the 10th Oil Trading and Logistics Africa Downstream Week,declared that it is impossible today to import products at the current market price, at current fixed foreign exchange rate.

According to him, There is no way today you take products to retail and sell at N145. It is not possible today. If that is true and I believe that it is true because we all go to the market, why can’t we sell above N145. That is where legislation should come in.

“I also know today that it impossible for this government to announce tomorrow that petrol is about N150. This government cannot sustain it. That is the truth.

The people will not take that number, that is why suppliers are not importing, it is not foreign exchange”

He said the NNPC has created a niche market for the foreign exchange and was rejected on the ground that forex was not enough to import.

“The truth is that marketers go back to the market and land it here, that you are required to sell it at N145 maximum. I am sure they won’t make it. We won’t let you to do it today. That is the main reason why people are not importing today, it is not FX.

Today, we are in subsidy regime. Absolutely,there is no way you bring product today and take it and sell at N145 and get back your money, and make profit. That is not possible. You can see some marketers saying that fuel is N138. It is because they did not import. Somebody has taken the heat of the price.

“Because we (NNPC) have taken the heat, and you buy from us you can afford to go to the market and then put a ridiculous price. It is not possible, because they did not import it. It is not foreign exchange”

Also, the Speaker of House of Representatives,Yakubu Dogara,who was represented by Chairman,House Committee on downstream,Joseph Akinlaja,said the lower house was committed to reviewing and improving legislation regarding refining,gas and key areas in the downstream sector operations in the country.

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