Mele Kyari, group general manager, crude oil marketing division of the Nigerian National Petroleum Corporation (NNPC), says the increase pump price of petrol is inevitable.
According to Vanguard, Kyari said this in Lagos at the 2016 Oil Trading and Logistics (OTL) Conference.
He reportedly said it was impossible to import products at the current foreign exchange rate, sell at the rate of N145 per litre, and make any gain.
“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,” Kyari reportedly said.
“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. 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. 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.”