NNPCL Confirms No Intention to Increase Fuel Prices at Retail Stations

The Nigerian National Petroleum Company Limited (NNPCL) has publicly confirmed that there are no intentions to increase fuel prices at its retail stations.
The company’s official Twitter account made this announcement late on Monday night.
The company’s statement reads as follows: “Dear valued customers, we at NNPC Retail appreciate your loyalty, and we want to assure you that we have no intentions of increasing the prices of PMS at our retail stations, contrary to widespread speculation.
“Please continue to purchase top-quality products at the most reasonable prices available across our NNPC Retail Stations nationwide.”
On Monday, reports emerged suggesting that fuel prices could potentially rise to at least N700 per litre.
The projection was based on the fact that the landing cost of petrol for oil marketers had increased by 37.4% month-on-month to N632.17 per litre in July 2023, up from N460 per litre in June 2023, as reported by Vanguard.
According to the Vanguard report, a breakdown of the cost showed that the product cost per litre amounted to N578.46, freight (Lome-Lagos) at N10.37, port charges at N7.37, NMDPRA levy of N4.47, storage cost at N2.58, marine insurance cost at N0.47, fendering cost at N0.36, and “other” costs at N0.05, as well as a finance cost totaling N28.04.
The report also stated that the transactional analysis put the landing cost of 28,000 metric tonnes of imported petrol at over $25 million, taking into account total product cost, total direct cost, and total finance cost.
This could potentially result in more than N22 billion in sales revenue, resulting in a loss of over N1.6 billion.
The Nigeria Labour Congress (NLC) has threatened to start a full-scale, indefinite nationwide shutdown of the nation if there is another increase in the price of fuel at the pump above the current N617 per litre, which they consider illegal.
NLC President Joe Ajaero said the following on August 14 during the African Trade Union Alliance meeting:
The official I&E (Investors’ and Exporters’) foreign exchange rate of the CBN, which has a lower exchange rate, has allegedly remained illiquid and unable to offer the necessary $25 million to $30 million for dealers to import petrol, according to oil traders.
Dealers, who were previously keen to import the good, have therefore stopped importing fuel as a result of this liquidity issue.

Source: Allnews Nigeria

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