THE NIGERIAN National Petroleum Company Limited (NNPC Ltd) on Wednesday said it did not clash with petroleum marketers over the removal of petrol subsidies.
The NNPC Ltd said this in a press release by Olufemi Soneye, its Chief Corporate Communications Officer.
The release, which is a reaction to media reports (not National Record) that the company on Tuesday clashed with petroleum marketers under the aegis of the Independent Petroleum Marketers Association of Nigeria (IPMAN) over the removal of subsidy on petrol.
The reports noted that petrol will now cost N1,200 per litre due to the cessation of under-recovery of fuel costs.
According to the reports, which quoted the National Public Relations Officer, Independent Petroleum Marketers Association of Nigeria, Ukadike Chinedu, subsidy on petrol was rising and that the cost of the commodity should be around N1,200/litre in a free market.
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The oil marketers claimed that subsidy on petrol was increasing considering the crash of the naira against the United States dollar and the cost of crude oil.
“To be pragmatic in this analysis, let’s consider the cost of petrol today in the United States. For Premium petrol, it is $2.99, while super petrol sells for $3.15 or $3.10 depending on the part of the country where you are making the purchase.
“Now, $3 in Nigeria is over N3,000, because a dollar in the parallel market is over N1,000. You can also see the cost of diesel, which is over N1,000/litre, and it is important to state that petrol is usually higher in price than diesel in a free market.
“So, if you consider the cost of diesel, dollar and other international factors, the price of petrol in Nigeria should be around N1,200/litre, but the government is subsidising it, which to an extent is understandable,” Chinedu was quoted as saying.
But in his initial reaction, Olufemi Soneye dismissed the claims that NNPC Ltd is clashing with the oil marketers over the removal of petrol subsidies.
Soneye further stressed the denial in a short press release Wednesday evening, where he urged Nigerians to disregard unfounded rumours and assured that there are no plans for an upward review of the petrol price.
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“The Nigerian National Petroleum Company Limited (NNPC Ltd) assures the public that there is no imminent increase in the cost of Premium Motor Spirit (PMS), commonly known as petrol.
“NNPC Ltd urges Nigerians to disregard unfounded rumours and assures them that there are no plans for an upward review of the PMS price.
“Motorists nationwide are advised against engaging in panic buying, as there is presently ample availability of PMS across the country,” Soneye stated in his press release, entitled: “No Increase in PMS Prices, NNPC Ltd. Assures Nigerians”.
