Friday, 02 June 2023 04:39

NNPC says it will end monopoly on petrol supplies

Rate this item
(0 votes)

Nigeria's state owned oil company NNPC will soon end its monopoly on petrol supplies, its chief executive told local television on Thursday, a day after it nearly tripled prices at its fuel stations countrywide.

Newly inaugurated President Bola Tinubu pledged to remove fuel subsidies, a popular but costly benefit that has drained billions annually from government coffers.

Mele Kyari told Arise TV that prices were expected to come down once new companies started supplying petrol, bringing more competition.

"All we did was to set variable prices depending on our costs by location and knowing full well that NNPC is the single supplier of the market and we are seeing that exit coming very, very quickly," said Kyari.

"There will be no monopoly, NNPC will not continue being supplier of this product alone."

Kyari has previously said the corporation was owed $6 billion in petrol subsidy payments by the federal government.

Under the Petroleum Industry Act signed into law two years ago, NNPC cannot supply more than 30% of gasoline in Nigeria.

"As soon as the market stabilises, oil marketing companies are able to come in. Competition will surely come in ... and you will see changes in prices downwards," said Kyari.

Nigeria imports most of its refined petroleum products because it has run down its refineries over the years.

The 650,000 barrel per day Dangote Refinery was commissioned last month, amid hopes of transforming the country into a net exporter of petroleum products.

 

Reuters

May 01, 2025

Oil prices record steepest monthly decline since 2021

Oil prices settled down on Wednesday and recorded the largest monthly drop in almost 3-1/2…
May 01, 2025

Appeal Court upholds conviction of professor who rigged election for Akpabio amid public outrage

The Court of Appeal in Calabar has upheld the conviction and three-year prison sentence of…
April 29, 2025

How African popes changed Christianity - and gave the world Valentine's Day

Now predominantly Muslim, North Africa was once a Christian heartland, producing Catholic popes who left…
April 26, 2025

Declassified CIA file about UFO aliens attacking soldiers released

A declassified document posted to the CIA’s website is raising eyebrows with claims of an…
April 29, 2025

At least 26 people killed as 2 vehicles run over bomb planted by Boko Haram…

At least 26 people were killed on Monday when two vehicles detonated an improvised explosive…
May 01, 2025

What to know after Day 1162 of Russia-Ukraine war

WESTERN PERSPECTIVE Russians fighting more intensely despite ceasefire talk, Ukrainian commander says Russian forces have…
April 27, 2025

Smartphone use could reduce dementia risk in older adults, study finds

The first generation that has been exposed consistently to digital technology has reached the age…
January 08, 2025

NFF appoints new Super Eagles head coach

The Nigeria Football Federation (NFF) has appointed Éric Sékou Chelle as the new Head Coach…

NEWSSCROLL TEAM: 'Sina Kawonise: Publisher/Editor-in-Chief; Afolabi Ajibola: IT Manager;
Contact Us: [email protected] Tel/WhatsApp: +234 811 395 4049

Copyright © 2015 - 2025 NewsScroll. All rights reserved.