Six months after petroleum products were reduced across the board, Oil Marketers Thursday June 5, readjusted the pump price through an increase of Le2, 300 due to changes in the world price market.
The new price announced saw Petrol shooting up from Le12, 500 to Le14, 800 per gallon. The costs of kerosene and diesel have also increased. Fuel oil has also attracted an increase of Le1,696.75 and will now be sold for Le7,440.34 per gallon
Briefing the media at the National Petroleum (NP) headquarters on the necessity of the increase, Mohamed Babatunde Cole said “as at today we are going to readjust the pump price, the reason being that there has been rapid movement in the world market price of petroleum products.”
He said the exchange rate has deteriorated and “these two factors put together when it gets about five percent of the landed cost then we have to adjust the price”.
The National Petroleum chief reiterated further that “I must tell you that these prices should have been changed a month ago, but the government decided to give back to the people what they have contributed by using the strategic stock fund to cushion the price so that the effect would not be much on the people.”
He also stated : “as you all know we cannot using it, thou that the purpose of it… and it got to a point that it should be reflected so that people would start buying at the new price”, while stressing that “as at today this is one of the best handled price change, because there is no forms of queues or shortages in any station.”
Mr. Cole explained further that there would not be any shortages or queues in any station as they have got sufficient stock on the ground.
According to Dan Mason, Director of Petroleum Unit he emphasized that, “this was a decision that was taken most unwillingly if the situation should be avoided if the level of importation and the oil marketers to be in a position to bring in timely products and ensure that its available.
He also assured that the situation is under constant review and as soon that there are indications that the prices should go the other way that would be implemented, while further explaining that “ours is a liberalize sector that is guided by international price of petroleum product,” and stressed that “the influence we have is the exchange rate which is the second factor that influence the pump price”.