NNPC Hints On Petrol Price Increase, Blames Marketers 

The Nigerian National Petroleum Corporation (NNPC), has blamed the scarcity of kerosene and cooking gas being experienced in different parts of the country on the conduct of marketers responsible for importing the products.

Group General Manager, Group Public Affairs Department of the NNPC, Mr Ndu Ughamadu, told Vanguard, that the oil marketers were also responsible for the hike in the prices of kerosene and cooking gas.

Ughamadu was reacting to growing insinuations that the scarcity of the products was a ploy by the NNPC to push for an increase in the prices of cooking gas, kerosene, petrol and other petroleum products.

He said the NNPC had been consistent in bringing in petroleum products into the country, but its efforts were not being complemented by the marketers, who he said had refused to bring in products.

The NNPC official also noted that the market for Liquefied Petroleum Gas was fully deregulated and that the NNPC could not compel the marketers to bring in the product, especially as it was not a regulator.

Meanwhile, there are fears in some quarters that the pump price of premium motor spirit (petrol) may rise in the coming days due to the growing landing cost of the product.

The federal government ceased paying subsidy on the product after a change in downstream oil sector policy in 2016. Oil importers presently sell within a price band of N135-N145 but there are indications that up to N67.7 is being incurred as extra cost on each litre of petrol sold at the pump.

Head of Energy Research at Ecobank, Dolapo Oni explained that “When oil price was at $52 per barrel, the landing cost was N165 per litre. Later when the price rose to $55, the price soared to N210 per litre.

“Now that oil price is averaging at $58 per barrel, the landing cost will hover around N213 per litre,” he said.

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