Increase In Petrol Price Stands – NNPCL

The Nigerian National Petroleum Company Limited has stated that local production of Premium Motor Spirit, also known as petrol, by Dangote Refinery, Port Harcourt Refining Company, and others in Nigeria will not affect the pump price of the product. This was stated in an interview with Arise News on Thursday.

He emphasized that it was erroneous to think that once domestic production began, fuel costs would drop.

The Dangote Refinery, which former President Muhammadu Buhari officially opened on May 22, 2023, would begin producing goods by the end of July or the beginning of August, according to Kyari.

The Port Harcourt Refinery will be delivered by the end of the year and is anticipated to increase local petrol production even more.

However, Kyari asserted that even if these facilities were expected to produce a large amount of gasoline, the price of the commodity would not go down despite their local production.

In a separate interview with Channels TV, he predicted that the long queues seen at filling stations wouldn’t last through Saturday.

He confirmed that the PMS price template for multiple states that were circulating on the internet on Wednesday was actually from the NNPCL.

“There is a notion that if the product is processed locally, prices will reduce. Let me make it clear that it is not going to change anything. If you produce locally, the refineries will also input the cost of production and other things, and it will be sold at the current price.

“There will also be no subsidy when local production starts because there is no cash-to-back subsidy, this country no longer has the resources to continue with subsidy,” Kyari stated.

“I don’t see it staying beyond another day or two, maximum. It can actually be on Saturday. We have supplies. The key trouble with the PMS system is supply, but I have supplies.

“There are over 810 million litres of PMS in depots, tanks, and fuel stations across the country, so you don’t have the problem of transferring those from marine to land; you already have them on the ground,” he stated.

“You have seen a document in the space out there. Every company does this. It is a marketing document. It was not a price announcing document; every company keeps this record and adjusts it appropriately on the basis of changing conditions in the market.

“So what you saw was just an internal company document that found its way onto the internet. It is an NNPC document, but it was not intended to be an announcement, and it is not an announcement because it can change the next day,” Kyari stated.