Marketers, NNPC differ on fuel price hike

There are fears that the price of petroleum products may again shoot up, as marketers have raised an alarm that the present situation as it concerns the rate of foreign exchange does not bode well for them.

But the Nigerian National Petroleum Corporation (NNPC) has assured that there won’t be an increase in fuel price, in the near future

Already the organised labour, through the Nigerian Labour Congress (NLC) has said it will resist any attempt to increase the price of fuel, currently selling at N145 per litre.

Major marketers had lamented that forex scarcity might necessitate another pump price hike as they made a last minute move to meet government for a life-line against the steady fall of naira.

Some filling stations have complained of not being able to get their booked supplies in the past two weeks, a situation they attributed to inability of the major oil marketers to import the products.

Letters of credits, which could be sourced through banks, are not being accessed due to the scarcity of dollars by the financial institutions.

Read also: Militancy: NNPC dumps Niger Delta, to import crude oil from Chad

Sources close to the marketers said with the naira exchanging at 400 to the dollar at the parallel market, and 320 at the interbank market, came to them as a shock.

They demand for urgent meeting with the ministers of Finance, petroleum Resources and the CBN Governor to find a way of averting disruption of the relative stability in the sector.

Those who commented on the issue said since the news of government subsidising the exchange rate of naira to dollar for this year’s pilgrim, players in the real sector have resolved to demand for similar treatment if the recovery of the distressed economy is to be expected.

Speaking on the issue, NNPC Group Managing Director Maikanti Baru in an interview with State House correspondents on Tuesday after meeting with President Muhammadu Buhari , said there was no basis for increasing fuel price, emphasising that marketers’ request for fuel importation had been met.

He said the NNPC’s supply was robust and that the corporation was meeting demands with 1.4 billion litres available.

“I have not been directed to increase pump price. Even the other price was based on recommendation from the regulated body. I’m not aware that they are planning to do any increase. You know there are several factors that necessitated that, especially the issue of exchange rate that has moved and we don’t expect any serious changes.

“So far, the request for forex for importation of gasoline popularly called petrol has been met, and our own supply situation is robust, we are meeting demands. We have over 1.4 billion liters on ground.

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