The Group Managing Director of Nigeria National Petroleum Corporation (NNPC) Mr Mela Kyari has given reasons why private filling stations are yet to adjust to the N125 new pump price of Premium Motor Spirit (PMS).
President Muhammadu Buhari had on Wednesday approved the reduction of fuel price from N145 per litre to N125 per litre.
The new price regime is expected to reflect on Automative Gas Oil gas oil (AGO), also known as diesel and the dual purpose kerosene (DPK), simply called kerosene.
Responding to questions on why the new price was not being enforced by the regulatory agencies, Kyari said it was because stations still had old stock.
He said NNPC filling stations have complied because even at the new price regime, they can recover its cost.
“As you are aware this announcement was made just yesterday. Our pricing at NNPC stations which will definitely recover our cost at N125 is the decision that the NNPC has been made and we have adjusted our prices in our filling stations.
“What we also know is that private marketers have bought products above this price from the market. And we know this is a transition, the market will balance itself and as soon as they are able to get rid of their existing stock, the forces of competition will bring everybody to the right price and I believe that it is possible to get cheaper products in few weeks to come, cheaper than what you see today.
“Be assured everybody will rush to sell even at the N125 nobody will agree to buy because probably you will find cheaper products. And we are very sure this will happen.”