Here is the real reason NNPC embargoed fuel price hike in February
The Nigerian National Petroleum Corporation (NNPC)on Thursday demanded stiff penalty for fuel marketers who have engaged in hoarding to create “artificial scarcity.”
The corporation, which also said that it had, in spite of the rise in the price of crude oil in the international market, ruled out any increment in the ex-depot price of Premium Motor Spirit (petrol) in February, 2021, raised the red flag on hoarding by some marketers.
It “called on relevant regulatory authorities to step up monitoring of the activities of marketers with a view to sanctioning those involved in products hoarding or arbitrary increase of pump price,” a press release by the Group General Manager, Group Public Affairs Division, Dr. Kennie Obateru, read.
The statement explained that the decision was to allow ongoing engagements with organized labour and other stakeholders on an acceptable framework that will not expose the ordinary Nigerian to any hardship, to be concluded.
“NNPC urged petroleum products marketers not to engage in hoarding of Premium Motor Spirit (petrol) in order not to create artificial scarcity and unnecessary hardship for Nigerians while giving assurance that it has enough stock of petrol to keep the nation well supplied for about 40 days,” the statement added.
It would be recalled that the nation’s downstream sector was deregulated in March 2020 with the Minister of State for Petroleum Resources, Chief Timipre Sylva, stating that the prices of petroleum products would be determined my prevailing market forces.
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