Why we can’t enforce new pump price of N125 at private filling stations, says Kyari

… they are still selling old stock

The Group Managing Director of the Nigeria National Petroleum Corporation (NNPC), Malam Mela Kyari, says private filling stations have yet to adjust to the N125 new pump price because they are still selling old stock.

He said NNPC as a state-run enterprise all its filling stations had complied with the presidential directive to adjust their pumps from N145 to N125 with immediate effect.

“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,’’ Kyari told newsmen in Abuja on Thursday.

Persecondnews recalls that President Muhammadu Buhari on Wednesday approved the reduction in pump price of premium motor spirit (PMS) from N145 per litre to N125.

The new price regime is expected to affect the two other petroleum products — Automotive Gas Oil (AGO) also known as diesel and the Dual Purpose Kerosene (DPK) simply called kerosene.

According to Kyari, the new price regime could not be enforced by the regulatory agencies because they still had old stock which they bought at well over the new price.

He said but for NNPC even at the new price regime, the filling stations  could recover their cost.

“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,” the NNPC GMD said.