- The current price of fuel in Nigeria should be about N256 per litre according to Mele Kyari, the head of Nigeria National Petroleum Corporation
- The boss of the government-owned corporation said the high price will enable the country recover the cost of importing petroleum products into Nigeria
- Possibility of increase in fuel price rises as Kyari said the Federal Government and the Nigerian Labour Congress are still negotiating for a right price
Mele Kyari, the Group Managing Director of Nigeria National Petroleum Corporation (NNPC) said the cost of Premium Motor Spirit (PMS) should be N256 per litre.
Kyari told Channels TV the price increase is necessary if the government corporation is to recover landing cost of fuel importation into the country. For months fuel price has remained stagnant.
Crude oil has risen to $74.56 in the international market, but it hasn't reflected in the fuel pump in Nigeria despite landing cost of petrol now put at N231.98 per litre as of June 16.
Filling station in the country are still running on February's crude oil price of $62.28, which had a landing cost range of N189.61 per litre in the same month, hence, the current N162 to N165 per litre price at the retail stations - whereas, it should be around N256.
The government have been running on loss for over four months, coupled with the fuel subsidy, which has now risen to N5.58 billion daily from Kyari's over N3 billion estimation in March.
The gap between the current fuel price and landing cost is weighing on NNPC, which is the only oil importer in Nigeria - it distributes to domestic and foreign oil firms.
Kyari hinted of price change as he said the government and the Nigerian Labour Congress are still holding talks on the appropriate pricing of petrol.
Meanwhile, Legit.ng had previously reported that the Minister of State for Petroleum, Timipre Sylva, said he wants the Federal Government to remove fuel subsidy.
Sylva said the subsidy is affecting the progress of the country and if it isn't removed, the refineries would not be commercially viable when they are rehabilitated.
He stated that the government should sell at market price rather than subsidising the cost for Nigerians as such action is not profitable.