Published: Sat, February 17, 2018
Medicine | By Brett Sutton

Scarcity: What we are doing to clear fuel queues - Kachikwu

Scarcity: What we are doing to clear fuel queues - Kachikwu

The National Economic Council (NEC), made up of state governors and chaired by Vice-President Yemi Osinbajo, has asked for "correct" pricing of petrol in the country. The President is obviously very committed to keeping the price of fuel at the cost where it is.

He assured her of NNPC's readiness to support her company with necessary interventions to keep the company well supplied with petroleum products in order for it to serve its areas of operation well.

He added that the Corporation chose to recognize BOVAS and its Managing Director, Mrs. Victoria Samson, for helping the government make life easy for Nigerians by selling petrol at the regulated price.

She noted that BOVAS would continue to work with the Managements of NNPC/PPMC not only to provide petroleum products at approved prices to Nigerians without diversion but also to resolve the current fuel crisis.

"And in the process, makes the operation of the current price regime nearly impossible without some measure of return for whoever is in the process".

"As at today, most if not all independent marketers have stopped importing refined products into Nigeria". And the NNPC has been suffering a lot of set backs, the highest amount of under recovery.

"By under-recovery it means the interplay between the landing cost of a litre of the PMS in Nigeria and the pump price of that product". If the product lands at N170 for example and you sell at N145, immediately you know that you have an under recovery of about N25 for each liter of fuel.

"The National Economic Council has a committee that has been interfacing with all revenue generating agencies of the federal government under the chairmanship of the Governor of Gombe State".

The Federal Government on Thursday said it had directed the Nigerian National Petroleum Corporation (NNPC) to clear the petrol queues that linger in filling stations in Abuja and neighbouring states before the commencement of the 2018 Nigeria International Petroleum Summit on Sunday.

The minister said that most oil producing countries were already working internally to ensure that they get the best margins from their businesses. We've instructed the NNPC to do whatever it takes to ensure that I do not bring visitors here next week and they will experience fuel queues.

"I will hate for my colleagues to come and see the fuel queues so my directive to NNPC would be to get these queues out of Abuja".

"It is on record that you have consistently demonstrated not only your ability to supply products to the market, but also to do so within the government-controlled price of N145 per litre", the GMD said in a statement by the NNPC spokesman, Mr Ndu Ughamadu.

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