The Federal Government has said it is making efforts to maintain retail price of fuel at N145 per litre.
This includes paying N40.70 for every litre, according to Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Maikanti Baru.
While speaking at a press conference in Abuja, Baru said the landing cost of petrol is now N171 per litre.
Baru said, “The landing cost comprising CIF (cost, insurance and freight) of petrol as of last Friday was in the neighborhood of $620 per metric tonne, so with the official exchange rate of N305 to the dollar, the landing cost should be N171.40 per litre,” he said.
“The government has consistently indicated that N145 per litre is the price and it has mandated the NNPC to keep the depot price at N133.28 per litre, so as to maintain a cap of N145 per litre.
“So, there is a lot of profit in between after taking the transportation cost of N7 off; there is sufficient margin for marketers in that PPPRA template at the price cap.”
Will it work?
If the allegations by petroleum bodies are anything to go by, this approach may not work in reducing price of fuel.
PENGASSAN and other oil workers had accused marketers of orchestrating the fuel scarcity to increase fuel price and make money off Nigerians.
The fuel marketers will still sabotage this effort by the Federal Government to achieve their aim this holiday season.