No Plan To Increase Petrol Price, Says NNPC

Minster of State for Petroleum, Dr Ibe Kachikwu

The Nigerian National Petroleum Corporation on Tuesday announced that there was no plan to increase the pump price of Premium Motor Spirit, popularly known as petrol.

The Punch report continues:

It stated that it had a robust supply arrangement that can guarantee sustainable supply over a long period of time.

In a statement issued by the Group General Manager, Group Public Affairs Division, NNPC, Mr. Garba-Deen Muhammad, the corporation said, “Reference of unsustainability of ₦145 per litre of petrol only relates to possible spike in international market price of petroleum products.

“This has been mitigated by NNPC’s long-term procurement contract plan that guarantees stable pricing.”

The Group Managing Director, Crude Oil Marketing, NNPC, Mr. Mele Kyari, on Monday reportedly said that the sale of petrol at ₦145 per litre was no longer feasible with the current foreign exchange.

“We have a very difficult business environment. It is impossible today to import products at the current market price, at the current fixed foreign exchange, forex rate,” Kyari reportedly said in Lagos.

But the corporation in its statement on Tuesday promised to sustain the tempo of petroleum products supply throughout the ember months and beyond across the country at the current rate of ₦145 per litre.

The NNPC added that it had resolved all issues that had to do with foreign exchange stability in order to ensure fuel price stability and distribution.

“Nigerians should not engage in panic buying, as there is no cause for alarm with respect to pump price increase or shortage of products,” it said.

Providing further explanation on the matter, Muhammad told journalists in Abuja that if there was going to be any increase in PMS price, “the PPPRA (Petroleum Products Pricing Regulatory Agency) would definitely sensitize Nigerians on it and give reasons for it.”

He added, “As for this moment, there is absolutely no plan to do that and no need for that because we have more than enough supply. In addition to that, we also have long-term procurement contract with our suppliers.

“The statement people are referring to was made within the context of technical explanation, not within the context of downstream operations. A new window to make forex available for marketers for their import needs have been opened and they are satisfied with it.”

Muhammad said there was already PMS glut in the market, as a lot of products were on ground waiting for off-takers, and stressed that there was no payment of subsidy by the government on petrol.