Tuesday, 25 October 2016

BREAKING: FUEL HIKE, IMMINENT


NNPC sends signals for fuel price hike
In what looks like a confirmation of speculations over the past weeks, the Nigerian National Petroleum Corporation (NNPC) has admitted that the current market price of N145 per litre for petrol may soon be hiked.
There are also speculations that oil marketers may want to take advantage of the Christmas period to hike the price, and gain more from expected increased demands that goes with the yuletide.
But many Nigerians have already frowned at having the increase within the yuletide as had always been in the past.
However, officials said there were two options left for the fuel marketers: either to adjust price that should not exceed two per cent profit margin or allow the price regulatory unit of NNPC resolve the new price to be announced, all aimed at retaining supply flow.
“The whole idea is to avoid reverting to the era of fuel scarcity, nobody will like to experience fuel scarcity in this country, neither does anyone want us to go back to the era of fuel subsidy” said an NNPC spokesman.
According to him despite the preferential exchange rate made available to oil marketers to import petrol, many were reluctant to do so because they would be selling at a loss at the prevalent pump price, implying that NNPC that continues to import it was subsidizing petrol.

Putting a seal on the issue on Monday, the group general manager, Crude Oil Marketing Division at the NNPC, Mr. Mele Kyari, said that the present administration would not announce another increase in the petrol pump price to avoid being accused of dictating price of fuel.