October 18, 2021

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N408.5 per litre? FG makes clarification on recommended new price of petrol

– The NNPC has reacted to the recommendations made by Nigerian governors on the price of petrol

– The corporation explained why the recommendations by the governors cannot be enforced

– The federal government justified the plan to remove fuel

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A day after the Nigeria Governors’ Forum (NGF) recommended a petrol price of between N408.5 per litre and N380 per litre, the Nigerian National Petroleum Corporation (NNPC) announced that there is no official announcement of any price hike for the product.

N408.5 per litre? FG makes clarification on reported increase in the price of petrol
N408.5 per litre? FG makes clarification on reported increase in the price of petrol
Source: Twitter

A spokesperson for NNPC, Kennie Obateru, told The Nation on Thursday, May 20, that the state governors do not have the powers to determine the pump price of petrol.

Obateru explained that petrol price-fixing lies within the purview of the federal government.

Similarly, the Nigerian government has announced that there will be no increase in the pump price of petrol in the country in June 2021.

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According to Premium Times, the minister of state for petroleum, Timipre Sylva, made the announcement Friday, May 21.

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He said:

“Once again, it has become necessary to assure Nigerians that despite the burden of under-recovery, the Federal Government is not in a hurry to increase the price of Premium Motor Spirit (petrol) to reflect current market realities.

“The current price of petrol will be retained in the month of June until the ongoing engagement with organized labour is concluded.”

The minister, however, noted that the NNPC cannot continue to bear the subsidy burden on its books,

He said the corporation pays between N100 and 120 billion a month to keep the pump price at the current level.

In another news, NNPC has explained that the zero revenue remittance projection in its letter to the Accountant General of the Federation (AGF) pertains only to the federation revenue stream it manages for the country.

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Kennie Obateru, the group general manager of the NNPC public affairs division explained in a statement released on Friday, April 30, that the letter was not a reflection of the overall financial performance of the corporation.

He noted that the clarification became necessary in the light of media reports insinuating that the corporation was in financial straits.

Source: Legit Newspaper