NNPC says no increase in fuel rice until conclusion of engagement with Labour
By Fredrick Wright
The Nigerian National Petroleum Corporation (NNPC) has said it would maintain its current ex-depot price of Premium Motor Spirit (petrol) until the conclusion of ongoing engagement with the organized labour and other stakeholders.
Addressing newsmen in Abuja, the Group General Manager, Group Public Affairs Division, Dr. Kennie Obateru, said the Corporation, at the moment, was bearing the burden of importing refined petroleum products as the supplier of last resort to guarantee energy security for the nation.
Shedding more light on the recent interview by the Group Managing Director, Mallam Mele Kyari, at the State House, Dr. Obateru stated that the NNPC has no intention to preempt ongoing engagement with labour by unilaterally increasing the ex-depot price of petrol, even though the Corporation is bearing the burden of price differentials between the landing cost and pump price of petrol.
He said as a proactive organization, NNPC has made arrangements for robust stock of petroleum products in all its strategic depots across the country to keep the nation well supplied at all times.
Obateru advised petroleum products marketers not to engage in arbitrary price increase or hoarding of petrol so as not to disrupt the market.
He also urged motorists not to engage in panic buying, stressing that NNPC was committed to ensuring energy security for the country as the supplier of last resort.
He assured marketers and all other relevant stakeholders in the downstream sector of sustainable collaboration for the public interest.
The NNPC had earlier said it could not sustain the N120 billion monthly subsidy.
Kyari, during the weekly media briefing organised by the Presidential Communication Team at the State House, Abuja, said the corporation can no longer bear the over N120 billion monthly subsidy for PMS.
According to him, the actual cost of importation and handling charges amounts to N234 per litre, while the government is selling at N162 per litre.
He added that the NNPC absorbs the cost differential which is recorded in its financial books.
Kyari, however, said that since NNPC could no longer bear the cost, sooner or later Nigerians would have to pay the actual cost for the commodity.
He said: “Our current consumption (evacuation) from our depots is about 60million litres per day. We are selling at N162 a litre. Current market price is 234, actual market price today.
“The difference between the two, multiply by 60 million, times thirty, will give you per month. “This is a simple calculation you do. If you want exact figures from our book, I do not have it from this moment but it’s between N100 billion and N120 billion per month.
“We are putting the difference in the books of NNPC and we cannot continue to bear,’’ he said.
