It appears the Federal Government may increase the fuel pump price to between N211 – N238/litre soon, as the Nigerian National Petroleum Corporation (NNPC) has stated that the corporation may no longer carry the burden of the actual market price.
This was disclosed by Mele Kyari, Group Managing Director, NNPC during a press briefing organised by the Ministry of Petroleum Resources on Thursday.
He explained that the actual market price of Premium Motor Spirit, popularly called Petrol, should be between N211 and N234/litre and that means consumers are not paying the market price.
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What is NNPC saying
Kyari said, “NNPC importing PMS at market price & selling at N162/L. The actual market price should be between N211 and N234/L. Meaning is that consumers are not paying the market price. The difference is being carried in the books of NNPC, and we may no longer be able to carry that burden.
“NNPC currently sole importer of PMS, and we’re trying to exit the underpriced sale of PMS. Eventual exit is inevitable, when it will happen I cannot say, but engagements are ongoing because the government is cognisant of the implications.
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“Nigeria’s current PMS consumption – i.e. evacuation from NNPC depots is about 60 million litres per day. Cheapest PMS price in any of our neighbours is above N300 per litre, up to N500 in some countries.”
He added that FG is vigorously trying to deepen Autogas to deliver alternative fuel for vehicles, which should cost as low as half the price per litre compared to PMS.
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GMD NNPC: NNPC importing PMS at market price & selling at N162/L. Actual market price should be between N211 and N234/L. Meaning is that consumers are not paying market price. The difference is being carried in the books of NNPC, and we may no longer be able to carry that burden.
— Presidency Nigeria (@NGRPresident) March 25, 2021
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In case you missed it
- The Nigerian National Petroleum Corporation (NNPC) had earlier insisted that the ex-depot price of Premium Motor Spirit (PMS), popularly known as Petrol, will not be increased in March.
- The NNPC’s statement was in reaction to a statement the Petroleum Products Pricing Regulatory Agency (PPPRA) published on its website on the night of Thursday, March 11, 2021, showing that the retail price of petrol would sell between a market band of N209.61 and N212.61.