Fuel prices are set to remain steady as the Nigerian National Petroleum Company Limited (NNPCL), the exclusive importer of petrol, asserts its capability to absorb under-recovery costs, according to oil marketers. The Independent Petroleum Marketers Association of Nigeria (IPMAN) clarified that NNPCL’s involvement in crude oil sales enables it to manage the under-recovery on fuel prices, unlike other downstream oil sector players who ceased petrol imports due to their incapacity to bear such costs.
Explaining that under-recovery represents notional losses from the difference between subsidized and production cost prices, IPMAN reassured the public about the management of Premium Motor Spirit (PMS) costs by NNPCL. Despite recent concerns raised by some about potential unsubsidized petrol prices, NNPCL reiterates the absence of subsidies and the deregulated status of petrol, affirming no intentions to increase its cost.
Addressing recent speculations, IPMAN’s National Public Relations Officer, Chief Ukadike Chinedu, emphasized the association’s focus on urging the government to expedite the rehabilitation of national refineries to reduce reliance on petroleum imports. IPMAN clarified its stance, highlighting NNPCL’s unique capacity to manage under-recovery through crude oil sales, enabling a stable PMS price amidst market dynamics.
Emphasizing the appeal against panic buying, the oil marketers assured the public of NNPCL’s assurance of adequate fuel quantities and expressed commitment as partners in the government’s agenda for a renewed hope in the petroleum sector.
