The past and present Group Managing Directors of the Nigerian National Petroleum Corporation (NNPC) have expressed concerns that the current pump price of petrol products at N145 per litre is no longer feasible.
This assertion was made by the GMDs after a one-day meeting held with the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, in Abuja.
According to them, the sum is no longer correlating well with the price-determining components of the commodity and the fluctuations of the foreign exchange rate.
A statement issued by the NNPC with respect to development, read:
“They (the GMDs) noted that the petrol price of N145/litre is not congruent with the liberalisation policy especially with the foreign exchange rate and other price determining components such as crude cost, Nigerian Ports Authority charges, etc remaining uncapped.”
The statement now confirmed an exclusive report by The Punch on August 7, 2016, in which oil marketers disclosed that the actual or real cost of petrol was N151.87 when all the pricing components are adequately captured.
The oil marketers had griped that they were struggling to maintain petrol price at N145 per litre because of the stiff competition in the downstream oil sector, but stressed that the practice was not sustainable.