Despite announcing the removal of subsidy on petrol and more than 400 per cent subsequent rise in the price, the Federal Government may be
secretly paying an unspecified amount to marketers of the product to maintain the current pump price.
A close aide of the President told Saturday PUNCH on condition of anonymity that the administration was scared of losing what remained of its goodwill and support base due to the excruciating pain Nigerians were currently suffering as a result of the President’s policies and their effects on the masses.
“Yes, the NNPCL and marketers gave feedback about what the ideal pump price of petrol should be, but we reasoned that any further increase will be catastrophic and ignite spontaneous protests nationwide. It will be suicidal for us to watch that happening.” “The signing, which took place today at the bank’s headquarters in Cairo, Egypt, will provide some immediate disbursement that will enable the NNPC Ltd. to support the Federal Government in its ongoing fiscal and monetary policy reforms aimed at stabilising the exchange rate market.”
The official, who pleaded not to be identified because of the sensitive nature of the subject, said when the firm brought in the first shipment of its imported petrol after the government liberalised the fuel importation market, the pump price was N617 per litre, but its filling stations were forced to sell at N565.
“Before subsidy removal, it used to cost a tanker about N5m to lift petrol from the depot, but now, the price has jumped to about N25m and the profit margin on that is just around N300,000. So, it is not an encouraging business at the moment.” Oil dealers said the Central Bank of Nigeria’s Importers and Exporters official window for foreign exchange had remained illiquid and unable to provide the $25m to $30m required for the importation of PMS by dealers.
“What I am seeing is around N600 and above, depending on the exchange rate, the current crude price at the international market and the landing cost. Those in Lagos will pay around N600, those outside Lagos around N600 plus, while those in the North will be paying anything from N700 and above,” he said.
The Special Adviser to the President on Media and Publicity, Ajuri Ngelale, had told State House correspondents on Tuesday that the President had instructed that the cost of petrol should not increase. NNPC Retail is the downstream subsidiary of NNPCL that retails refined petroleum products for the group.
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