3 January 2014

Nigeria: FG Allays Fears of Fuel Price Hike

Photo: Premium Times
Fuel pump.

The federal government has assured the people that it does not intend to jack up the prices of petroleum products.

The assurance, from Department of Petroleum Resources (DPR), came against the backdrop of current panic in the market over a possible hike in fuel price.

The DPR also warned marketers not to sell above official prices and to desist from hoarding products to avoid creating artificial scarcity in the system and hardship for the consumers. "Meanwhile, all DPR offices nationwide have stepped up surveillance and monitoring of all products retail outlets to ensure compliance. All defaulters will be sanctioned in accordance with the law," it said in a statement.

This clarification, THISDAY gathered, followed speculations by some marketers that the government was planning to increase the price of petrol this year.

The price of diesel has since been deregulated while that of kerosene, which has however not been deregulated officially, is no longer sold at the official price of N50 per litre. While the marketers claimed that the supply of petrol was inadequate at this period, resulting in price hike in some cities, the Nigerian National Petroleum Corporation (NNPC) said there was enough stock of products in its stock.

The Zonal Chairman of the National Union of Petroleum and Natural Gas (NUPENG) workers, Mr. Tokunbo Korodo, told THISDAY that there was shortage of supply. But the acting Group General Manager, Public Affairs Division of the NNPC, Dr. Omar Farouk Ibrahim, said the corporation had consistently maintained the same level of supply for the past two years.

He said the NNPC had enough products, adding that the current tension might have been caused by some of the marketers involved in the distribution of products, who took advantage of Christmas to go on holiday.

The Executive Secretary of Major Oil Marketers Association of Nigeria (MOMAN), Mr. Olufemi Olawore, also said there was no cause for panic as the major marketers were importing enough products.

Copyright © 2014 This Day. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.

AllAfrica publishes around 2,000 reports a day from more than 130 news organizations and over 200 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.