The Nigerian National Petroleum Company (NNPC) Limited on Friday has spoken on the plan to increase the price of petrol.
It has been reported that the landing price of the Premium Motor Spirit, popularly called petrol, jumped from N651/litre to N720/litre because of the volatility in the exchange rate.
Confirming the development, the Chief Executive Officer, of PETROCAM Trading (Nig) Ltd., Patrick Ilo stated that as of Tuesday, he landed 52,000 metric tonnes of petrol imported by the company N720/litre without subsidies.
Ilo explained that at this cost, his company can not sell because of the price of the Nigerian National Petroleum Company Limited (NNPCL).
The PETROCAM boss said this is evidence that the NNPCL is still subsidising the product, considering the landing cost, adding that he doesn’t blame the government.
According to him, if the landing cost was already N720, the pump price should be around N729/litre in Lagos State if the Federal Government had truly stopped subsidising the product.
It was gathered that many petroleum products depots are currently deserted due to a lack of products caused by foreign exchange rate volatility, as the landing cost of petrol, has increased to N720/litre.
Petroleum products dealers also stated that filling stations were shutting down daily in large numbers, as it was becoming increasingly tough to run the business. They said this could lead to widespread fuel scarcity in the coming months.
The development fueled the speculations that the pump price of the petroleum product may skyrocket in the next few days.
NNPC, however, in a statement released on X (formerly known as Twitter) denied the report.
The company management stated that it has no intention to increase the price of petrol.
NNPC called on Nigerians to buy the best quality products at the most affordable prices at their stations.
The statement reads, “Dear esteemed customers, we at NNPC Retail value your patronage, and we do not have the intention to increase our PMS pump prices as widely speculated.
“Please buy the best-quality products at the most affordable prices at our NNPC Retail Stations nationwide.”
The end of fuel subsidy regime by the administration of President Bola Tinubu has caused hike in the price of petrol, a development which led to economic hardships in the country.
The National President of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) Festus Osifo said the Federal Government is still paying subsidy on petroleum.
Osifo said due to the cost of crude oil in the international market and the dollar to naira rate, the government still pays subsidy for the product.
“They [government] are paying subsidy today,” he said on Channels Television’s Politics Today on Friday.
“In reality today, there is subsidy because as of when the earlier price was determined, the price of crude in the international market was somewhere around $80 for a barrel. But today, it has moved to about $93/94 per barrel for Brent crude. So, because it has moved, then the price [of petroleum] also needed to move,” the PENGASSAN boss added.
For the government to stop subsidising petroleum, he said two things must happen.
“The only reason the price will not move is when you are able to manage your exchange rate effectively and you are able to pump in supply and bring down the exchange rate,” Osifo maintained.
“So, if the exchange rate comes down today, we will not be paying subsidy. But with the exchange rate value and the price of crude oil in the international market, we have introduced subsidy.”
