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Petrol: N145 per litre not sustainable – NNPC

October 26, 2016

The Group General Manager, Crude Oil Marketing Department of the Nigerian National Petroleum Corporation

(NNPC), Mele Kyari, has said that the sale of petrol at N145 per litre is not sustaining due to the current economic recession. Kyari stated this while speaking at the 10th Oil Trading and Logistics Africa Downstream Week in Lagos.

According to Kyari, the current economic downturn has made it impossible to import petroleum products at the current market price and at the current fixed foreign exchange rate and still make profit as well as recovered the capital invested in importation.

He said despite the harsh realities surrounding importation, government isn’t planning on increasing the pump price of petrol.

“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 take that number. But that is why the suppliers now are not importing. It is not about the foreign exchange. We are in subsidy regime absolutely, there is no way you bring product today and take it and sell at N145 and get back your money, and make profit. That is not possible. You can see some marketers saying that fuel is N138. It is because they did not import. Somebody has taken the heat of the price”he said

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