The Deputy President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Zarama Mustapha, said the price of fuel can’t fall below N500 per litre.
Mustapha, during an interview with Channels TV on Thursday, disclosed that this is due to the Nigerian National Petroleum Company (NNPC) Limited being the sole importer of refined oil into Nigeria.
His statement followed the increase in fuel price by the NNPC on Wednesday. The NNPC adjusted the price to N500 and above from N189 per litre.
The increase was implemented after President Bola Tinubu said there is no provision to subsidise fuel, after accepting the recommendation of his predecessor, Muhammadu Buhari to phase out the subsidy.
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Mustapha said NNPC still regulates the price of fuel in Nigeria because it is the only importer of fuel into the country, but when the NNPC allows other companies to import, there will be competitive prices.
In the meantime, he disclosed that fuel is sold to oil marketers at N460/litre at fuel depots, but the pump price will rise to N500 per litre after factoring in transportation costs and profit margin.
“NNPC being the sole supplier is the determiner of how much we purchase. The deregulation is just taking effect. May be with time, they will allow other players to also participate in the importation of the product to compete with the NNPC Limited.
“I still believe the NNPC is still the government because it is owned by the government,” Mustapha said during the interview.