There are speculations of petrol price hitting N190 amid concerns over the non-implementation of the full deregulation of the downstream petroleum sector.
Top officials of two major marketers’ associations who spoke with Punch on Saturday said the continued increase in oil prices had brought back petrol subsidy.
According to the marketers, the pump price of petrol should be between N185 and N200 per litre instead of N160 and N165 per litre which it is currently sold at filling stations.
Executive Secretary/Chief Executive Officer, Major Oil Marketers Association of Nigeria, Mr Clement Isong who faulted the continuous sale of fuel at N160 and N165 per litre in many filling stations in Lagos, said it meant somebody is bearing the cost of subsidy which the country cannot afford at this time.
Isong said: “Members of my association are operating in Nigeria and care about the long-term sustainability of the industry as well as the country itself.
“So, we know that depending on what exchange rate you use, the pump price should be between N185 and N200 per litre.
“For as long as we continue to sell the product at what we are currently selling it, then somebody is bearing the cost of subsidy, and the country really cannot afford subsidy at this time.”
He went on to add that while the demand for petrol had increased significantly in the country, the security of supply had been threatened. He also noted that smuggling might have resumed because of the significantly different prices across the borders which were recently opened.
While there are concerns on if the NNPC would again bear the latest subsidy cost on behalf of the government if the pump price of petrol is left unchanged amid the rise in oil prices, Group General Manager, Group Public Affairs Division of the Corporation, Dr Kennie Obateru said whatever would be done regarding petrol pump price would be based on the advice from the Petroleum Products Pricing Regulatory Agency.
According to him:
“The point is that NNPC is the only one importing the product (petrol) for now. We are looking forward to other marketers joining in the importation of the product, so that the burden will not just be on NNPC.”
When asked if the NNPC had started bearing subsidy cost, he said;
“I think it would be premature to say because it has to be based on whatever PPPRA works out as to the pricing. The market is already deregulated.”
He further averred that the desire of government was to have a fully deregulated market.
