News

Why FG may increase fuel pump price between N211 – N238/litre soon

The NNPC boss stated that the actual market price should be between N211 and N234/litre.

Advertisement

Nigeria plans to support oil price with lower production cost per barrel, NNPC records 34% increase in trading surplus, NNPC begs security agencies to allow petrol tankers commute during lockdown, FG abolishes petrol subsidy regime as full deregulation sets in

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.

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.

“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.”

READ MORE:  BBNaija: Biggie issues Maria, Pere , JMK strike

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.

Dear Reader,
Every day, we strive to bring the most accurate, up-to-date, and complete information to our readers like you. It requires money to produce good journalism. We're asking for your help today to help us do more. Your contribution ensures that Metro Times can continue to provide good journalism to people all over the world.  Donate or sign up for as little as N1,000 to become a member. Learn more about our membership here

Bank transfers can be made to:
Union Bank Plc
0139921998
Micnaij Media Ltd


Inquiries:
Email: info@metrotimesonline.com
Whatsapp: +234 701 162 0455

Leave a Reply