Amidst the present recession, the Nigerian National Petroleum Corporation (NNPC) on Monday, October 24, hinted that the sale of petrol at N145 per litre was no longer sustainable with the current foreign exchange rate.
The group general manager, Crude Oil Marketing Department of the NNPC, Mele Kyari made this known at the 10th Oil Trading and Logistics Africa Downstream Week in Lagos state.
We have a very difficult business environment. It is impossible today to import products at the current market price, at current fixed foreign exchange, FOREX rate.
There is no way today you can take products to retailers and sell at N145. It is not possible. If that is true and I believe that it is, because we all go to the market. Why can’t we sell above N145? That is where legislation should come in. I also know today that it is impossible for this government to announce tomorrow that petrol is about N150. This government cannot sustain it. That is the truth. The people will not accept that figure.
That is why suppliers are not importing. It is not FX. We have created a niche market for the FX. I am part of the committee allocating FX. We gave FX. It was rejected. The reason being given is that FX is not enough to import. But that is not true.
The truth is that marketers go back to the market and land it here, that you are required to sell it at N145 maximum. I am sure they won’t make it. We won’t let you do it today. That is the main reason people are not importing today. It is not FX. Today, we are in subsidy regime, absolutely. There is no way you bring product today and sell at N145 and get back your money, and make profit. That is not possible. You can see some marketers saying that fuel is N138.
It is because they did not import. Somebody has taken the heat off the price. Because we (NNPC) have taken the heat, and you buy from us; you can afford to go to the market and then put a ridiculous price. It is not possible, because they did not import it. It is not FX.
As I speak to you, there is stranded FX that nobody is ready to pick up. We have closed the chapter on FX.