No plan to hike petrol pump price in July — Kyari

By Matthew Denis, Abuja

The Nigerian National Petroleum Corporation (NNPC) has said there is no plan to increase the official pump price of Premium Motor Spirit (PMS), otherwise known as petrol, from N162 in July.

The Goup Managing Director (GMD) of NNPC, Malam Mele Kyari stated this on Tuesday during a programme on Channels Television.

He, however, noted that engagements were still ongoing with the Organised Labour to arrive at the appropriate price of the petroleum product, stating that until both parties arrive at a conclusion, the current price remains.

According to him, President Muhammadu Buhari instructed the corporation not to make petrol price out of reach of Nigerians, “especially at this moment.”

“What this means, however, is that we are taking out cash that could have been used for other things to pay under-recovery,” he said.

He revealed that Dangote refinery being constructed in Lagos State would commence operation this year.

On fuel subsidy, Kyari lamented that the inability to find an appropriate price for petrol has forced the continuation of the subsidy scheme.

The NNPC is currently the sole, official importer of petroleum products into the country.

While its landing price is about N256 per litre, according to Mr Kyari, petrol sells for N162 to N165 in most parts of Lagos.

In March 2020, the Federal Government said it would allow market forces to dictate the pump price of petrol.

But after oil prices rose in the preceding months, the Federal Government decided not to adjust the price correspondingly under pressure from organised labour.

“The reality is that we cannot afford it,” Mr Kyari said.

“But also the second reality is if you don’t do something smart, you could end up throwing prices at Nigerians that are well above prices that they should pay for.”

The NNPC chief said the government is still engaging with organised labour and other stakeholders on how to properly price the product.

“The engagement is aimed at making sure there is a reasonable level of pricing that we can do that will recover the cost,” he said.

That’s why banks have come forward to lend to us, so we can take equity in this.”