Petrol To Rise to N234 Per Litre As As NNPC Set To Stop N120B Subsidy

Petrol To Rise to N234 Per Litre As As NNPC Set To Stop N120B Subsidy

cloudnewsmag had reported that the Petroleum Products Pricing Regulatory Agency (PPPRA) had released a template increasing petrol price to N212 per litre — but the template was later deleted.

Speaking during a ministerial briefing on Thursday at the Presidential Villa, Abuja, Kyari said NNPC can not bear the burden of underpriced sales of premium motor spirit (PMS), better referred to as petrol, adding that the market value must be implemented.


He said NNPC pays between N100-120 billion a month to stay the pump price at the present levels.

“The price could are anywhere between N211 and N234 to the litre. The meaning of this is often that buyers aren’t paying for the complete value of the PMS that we are consuming and thus someone is paying that cost,” he said.

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“As we speak today, the difference is being carried within the books of NNPC and that i can inform you that NNPC may not be during a position to hold that burden.”

The NNPC GMD said the federal is functioning to deepen the autogas programme which can function an alternate to petrol.

“That is why early last year if you recall, the complete deregulation of the PMS market was announced and that we have followed this through until we need to September when prices shifted to N145,” he said.

“As we speak today, i will be able to not say we are during a subsidy regime but we are during a situation where we try to exit this subsidy or underpriced sale of PMS until we get in terms with the complete value of the merchandise within the market.

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“Today, PMS sells across our borders anywhere above N300 at any of our neighbours. And in some places, it’s up to N500 and N550 to the litre.

“In some countries, Nigerian fuel is their primary fuel. We are supplying almost everybody within the West African region, so it’s very difficult to continue this because we’ve our own issues which is why the eventual exit from this is often completely inevitable.

“When which will happen, I don’t know. But i do know that engagements are happening . the govt is extremely concerned about the natural impact of price increases on transportation and other consumer segments of our society and as soon as those engagements are taken to logical conclusion, i’m sure that the market value of PMS are going to be allowed to play at the proper time.”

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The resurgence within the price of petroleum bodes well for the Nigerian economy as this may boost the county’s revenue needed for the implementation of the 2021 budget, improve petroleum receipts and consequently bolster exchange inflows.

However, the prolonged high crude prices would ultimately feed into a climb in petrol’s landing cost — meaning a rise in fuel price. this is able to further weaken the purchasing power of Nigerians who are already battling with high inflation, unemployment and stuttering economic process .


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