The Nigerian National Petroleum Corporation (NNPC) has assured Nigerians that there would be no increase in the ex-depot price of Premium Motor Spirit, popularly known as Petrol in May.
This was disclosed by the Group Managing Director of NNPC, Mele Kyari, on Monday via the Corporation’s Twitter handle.
It tweeted, “There would be no increase in the ex-depot price of Premium Motor Spirit in the month of May 2021.”
Ex-depot price is the cost of petrol at depots, from where filling stations purchase the commodity before dispensing to final consumers.
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Also, the GMD announced that there would be no increase in the ex-depot price of Premium Motor Spirit (PMS) in the month of May 2021.
— NNPC Group (@NNPCgroup) April 19, 2021
Kyari also added that Petroleum Tanker Drivers had suspended their proposed strike after the intervention of NNPC in the impasse between the PTD and the National Association of Road Transport Owners.
“We have given our commitment to both NARTO and PTD that we will resolve the underlining issue between them and come back to the table within a week so that we’ll have a total closure of the dispute,” he added.
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What you should know
- NNPC has maintained an ex-depot price of N148/litre since February despite the hike in the actual cost of the commodity, hence incurring subsidy of over N120bn monthly.
- Also in March, the NNPC said it would maintain its ex-depot price for petrol until the conclusion of ongoing engagement with the organised labour and other stakeholders.
Petroleum Products’ subsidy could not be completely eliminated until:
(1) We are able to refine enough petroleum products for local consumption
(2) The Central Bank of Nigeria (CBN) is able to efficiently manage our foreign exchange transactions. Demand for foreign currency is increasing because some of Our political Leaders who are not earning foreign currency; are spending Our collective foreign currency to service their foreign bank accounts and maintain their foreign activities since they have homes in abroad.
(3) We stop using increase in the price of crude to inflict pain on the masses. All things being equal; increase in the price of crude in international market would increase the foreign currency earning of the Federal Government and consequently reduce the exchange rate which in turn mitigates the effect of increase in the price of imported refined petroleum products caused by increase in price of crude. I think the CBN owes us explanation on why the increase in price of crude has not translated to reduction in exchange rate.
All relevant parties involved in negotiation for increase in price of PMS are to please consider the above and save the masses.