Wednesday 19 February 2014

Why Kerosene is not sold at Official Price - NNPC

The Nigeria National Petroleum Company (NNPC) yesterday in Abuja revealed that kerosene was not sold at official price of N50 per litre because of diversion of the product by marketers.
 
NNPC’s Group Managing Director, Mr Andrew Yakubu told an investigative hearing on the supply, subsidy and distribution of kerosene that other reasons for the high prices include surcharges by middlemen, and that its usage for road construction and aviation fuel was also a factor in its scarcity. 
He also stated at the hearing, which was organised by the House of Representatives on Petroleum, that monitoring of the country’s boarders will ensure that the product was not smuggled out.
 
He said that NNPC was working to ensure that all pipelines were functional to prevent the continued diversion of kerosene, and said that though there was a directive to stop a subsidy on the product it, this had not been fully implemented.
 
A presidential directive was issued on June 2009 to stop subsidy on kerosene, and daily supplies increased from nine million liters to 11 million liters in 2011.

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