NNPC says the sale of petrol at N145 per litre was no longer sustainable with the current price of foreign exchange
The corporation although noted that attempt by FG to make an increase would not go down well with the citizenry
Mele Kyari, the group general manager of crude oil marketing dept of NNPC, says Nigeria was still in a subsidy regime
Amid recession, the Nigerian National Petroleum Corporation (NNPC) on Monday, October 24, reminded the nation that the sale of petrol at N145 per litre was no longer sustainable with the current price of foreign exchange.
Mele Kyari, the group general manager, Crude Oil Marketing Department of the NNPC, made this known at the 10th Oil Trading and Logistics Africa Downstream Week in Lagos state, Vanguard reports.
The NNPC has reminded the nation that sale of petrol at N145 per litre was no longer sustainable with the current price of foreign exchange.
He said: “We have a very difficult business environment. It is impossible today to import products at the current market price, at current fixed foreign exchange, FOREX rate.
‘’There is no way today you can take products to retailers and sell at N145. It is not possible. If that is true and I believe that it is, because we all go to the market. Why can’t we sell above N145? That is where legislation should come in.”
Although Kyari explained that the current price was not realistic, he noted that attempt by the government to make an increase would not go down well with the citizenry as it will be resisted.
He said: “I also know today that it is 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 accept that figure.
‘’That is why suppliers are not importing. It is not FX. We have created a niche market for the FX. I am part of the committee allocating FX. We gave FX. It was rejected. The reason being given is that FX is not enough to import. But that is not true.
“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 do it today. That is the main reason people are not importing today. It is not FX.”
According to Kyari, Nigeria was still in a subsidy regime as the NNPC took the bulk of importation to ensure that petrol was sold at the official rate of N145 per litre.
“Today, we are in subsidy regime, absolutely. There is no way you bring product today 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 off 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 FX.
“As I speak to you, there is stranded FX that nobody is ready to pick up. We have closed the chapter on FX,” he said.
We recalls that a data released by the National Bureau of Statistics (NBS) last week, showed that petrol sold above N145 per litre in 15 states of the federation last September, despite the federal government’s assurance that the price of petrol will reduce.
According to the NBS, Cross River state led the price table with N154.6, followed by Kaduna, which had N151.8, while Kogi occupied the third position with the price of N150.4. In Enugu state, petrol was sold at N148.7, while it was sold at N148.5 in Borno and N148 per litre in Kebbi state during the period under review.
In Ebonyi state, it was sold at N147.6, while it sold at N147.2 in Bayelsa, N147.1 in Abia, N147 in Nassarawa, N146.5 in Kwara, N146.4 in Plateau and Benue, N146.3 in Niger, N146.1 in Imo and N145.6 per litre in Gombe state. However, Akwa Ibom State recorded the lowest price of N142.5 per litre.
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