NNPCL refutes claims of conflict with marketers over PMS payment

The National Petroleum Company Limited (NNPCL) dismissed the allegations on Wednesday, January 3, that it had a dispute with marketers regarding the payment of Premium Motor Spirit (PMS), also known as petrol.

According to a report by Punch, the price of petrol should rise to N1,200 per litre as a result of the under-recovery of fuel costs.

The report stated that the NNPC and the fuel marketers, under the umbrella of the Independent Petroleum Marketers Association of Nigeria, had another confrontation on Tuesday over the elimination of subsidies on gasoline.

The confrontation occurred amid the weakening of the naira against the United States dollar at both the official Investors & Exporters Window and the parallel market. On Tuesday, the local currency settled at 998/dollar at the official market, while it exchanged at 1,225/dollar at the black market.

Due to the declining naira rate, economists and oil marketers said PMS subsidies were rising lately, but the NNPC swiftly rebutted the marketers and asserted that it was recouping its full cost on the importation of Premium Motor Spirit, commonly known as petrol.

Also, the Chief Executive Officer of the Financial Derivatives Company, Bismarck Rewane, said in a recent interview that fuel subsidies were not abolished but diminished. The report added that marketers said subsidy on petrol was increasing considering the plunge of the naira against the United States dollar and the cost of crude oil, stressing that PMS should sell for N1,200 per litre in a free market.

NNPC, in a rejoinder on Wednesday, denied the reports.

The brief rejoinder that NNPC Group Communications Officer Olufemi Soneye issued today reads: NNPC Ltd. emphasises that it has not clashed with any party. The Punch headline is deemed unfortunate. The publication sought confirmation on the alleged subsidy reduction, to which NNPC responded that the subsidy has been entirely removed.