Why petrol price increment was reversed – NNPC

The Nigerian National Petroleum Corporation, NNPC, has given a hint why the petrol price increment announced last week was reversed.

The Petroleum Pricing Regulatory Authority, PPRA, had published N212.61 as new price per litre of petrol.

But the PPRA withdrew the pricing template and denied planning to hike petrol price after a public backlash.

Kennie Obateru, spokesman for the state oil company, reportedly said ongoing engagement with labour is why the price has not been changed.

“The minister and our group managing director had explained that the current pump price is not reflective of the market forces but that engagement is ongoing with labour on this issue.

“This is to find a way in which the cost issues are addressed so as not to impact negatively on Nigerians. That engagement is still ongoing and that is why we said there will be no increment,” said Obateru, in a report by Punch.

“Initially we said it (no increment) was in February but the engagement still continued in March, which was why we said we are not increasing it in March.

“But the fact is that the current pump price is not reflective of the expected market price for petrol. However, we have to agree with labour before taking any action.”