FUEL PRICE WILL BE INCREASED: BUHARI SAYS

SHOCKING CHANGE: FUEL PRICE WILL BE INCREASED -- BUHARI

Fuel Price Will Be Increased,
President Buhari Tells Nigerians
President Buhari and NNPC has said the current market
price of N145 per liter is no longer sustainable. Both the
President and NNPC admitted that oil marketers were
reluctant to import fuel because they would be selling at
a loss.
Speaking in Lagos at the 2016 Oil Trading and Logistics
(OTL) Conference, the President, ably represented by the
Group General Manager, Crude Oil Marketing Division at
the NNPC, Mr. Mele Kyari, said there was no way petrol
would continue to be sold at the current pump price.
Kyari however added that President Buhari is yet to
make up his mind on whether to increase fuel prize or
not. According to him, legislation by the National
Assembly would be required for petrol to be sold above
N145 per liter. He said some suppliers had already
stopped importation because of the current pricing
regime. “We have a very difficult business environment.
“It is impossible today to import products at the current
market price – at the current foreign exchange rate.
“There is no way today you can take the product to retail
and sell at N145. It is not possible today. “If that is true
and I believe that it is true because we all go to the
market, why can’t we sell above N145? “I also know
today that it is impossible for this government to
announce tomorrow that petrol is about N150.
“The people will not take that number. That is why
suppliers are not importing,” he added. “It problem here
is not FX. We have created a niche market for FX. “I am
part of the committee that allocates FX to marketers.
“But it is rejected, and the reason being given is that the
FX is not enough to import.
But that is not the truth,” he said. “Today, are we in a
subsidy regime? Absolutely. “There is no way you can
bring products today and take it and sell at N145 and get
back your money, and make a profit. “That is not
possible.

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