Oil marketers who brought in petrol approximately four months ago have ceased further imports into Nigeria, creating uncertainty in the market. According to statements given to BusinessDay on Wednesday, these marketers have halted imports, citing an inability to sell at market-driven prices.
This challenge is attributed to the Nigerian National Petroleum Company (NNPC) Limited, which insists on fixed prices of either N568 or N617, depending on the location.
One of the licensed marketers revealed to BusinessDay that, for more than four months, NNPC Ltd has been the sole importer of the product.
The source explained that the current petrol price has been sustained due to government subsidies, making it difficult for other marketers to break even, especially considering the landing cost is over N1,000. The reintroduction of subsidy has deterred other marketers from bringing in the product.
In response to this development, Mele Kyari, the group CEO of NNPC Ltd, stated that oil marketers withdrew from petrol importation due to challenges in managing price fluctuations in the downstream sector.
During a session with the Senate Committee on Finance in December, Kyari emphasized that the oscillation and responsibilities imposed by the Petroleum Industry Act were factors the oil companies found challenging to manage.
He assured lawmakers that NNPC Ltd is effectively managing the market, although certain elements like truck owners adjusting prices are beyond their control.
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