President Buhari and NNPC has said the current market price of N145 per liter is no longer sustainable.
Both the President and NNPC admitted that oil marketers were reluctant to import fuel because they would be selling at a loss.
Speaking in Lagos at the 2016 Oil Trading and Logistics (OTL) Conference, the President, ably represented by the Group General Manager, Crude Oil Marketing Division at the NNPC, Mr. Mele Kyari, said there was no way petrol would continue to be sold at the current pump price.
Kyari however added that President Buhari is yet to make up his mind on whether to increase fuel prize or not.
According to him, legislation by the National Assembly would be required for petrol to be sold above N145 per liter.
He said some suppliers had already stopped importation because of the current pricing regime.
“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.
“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,” he added.
“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,” he said.
“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.