As Nigerians grapple with recession, the
Nigerian National Petroleum Corporation, NNPC, Monday reminded the nation that
the sale of petrol at N145 per litre was no longer feasible with the current
price of foreign exchange.
The Group General Manager, Crude Oil Marketing,
NNPC, Mr. Mele Kyari, stated this at this year’s Oil Trading and Logistics
Expo, OTL, holding in Lagos.
He said: “We have a very difficult business
environment. It is impossible today to import products at the current market
price, at current fixed foreign exchange, FOREX rate. There is no way
today you can take products to retailers and sell at N145. It is not possible.
If that is true and I believe that it is, because we all go to the market. Why
can’t we sell above N145? That is where legislation should come in.”
Kyari, who explained that the current price was
not realistic, however, said that any official increase by the government would
not go down well with the citizenry as it will be resisted.
“I also know today that it is impossible for this
government to announce tomorrow that petrol is about N150. This government
cannot sustain it. That is the truth. The people will not accept that figure.
‘’That is why suppliers are not importing. It is
not FX. We have created a niche market for the FX. I am part of the committee
allocating FX. We gave FX. It was rejected. The reason being given is that FX
is not enough to import. But that is not true.
“The truth is that marketers go back to the market
and land it here, that you are required to sell it at N145 maximum. I am sure
they won’t make it. We won’t let you do it today.
That is the main reason people are not importing
today. It is not FX,” he added. Kyari further explained that Nigeria was still
in a subsidy regime, as the NNPC took the bulk of importation to ensure that
petrol was sold at the official rate of N145 per litre
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