Oando, MRS Increases Fuel Price, Risk Losing Operational License Amid Gov’t Threat

Oando, MRS, and some filling stations have began selling Premium Motor Sprirt (PMS) above N165, three weeks after the Federal Government threatened to revoke license of firms that hike fuel price.

Prime Business Africa had reported last week that the Nigerian National Petroleum Company (NNPC) Limited hiked pump price to N175 per litre at one of its retail stations in Alagbole, Ota, area of Ogun State.

Although NNPC later reversed the price to N165, however, checks by Prime Business Africa on Monday shows private-owned retail stations are now selling between N170-N175 per litre across competing firms.

It was gathered that Oando increased its fuel price by N5, to sell at N170, with MRS upping cost by N10, as motorindividual als buy at N175 per litre. The hike was implemented during the weekend, reflecting a subtle agreement between oil marketers in the government-controlled oil industry.

What you need to know

Since the hike, FG has not publicly addressed the decision by the oil marketers, however, note that in late June, FG agencies, Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Petroleum Pipeline and Marketing Company (PPMC) monitored fuel sales in Abuja to prevent hike above the government-agreed N165 per litre price.

The agencies threatened to revoke license of oil marketers that increase the price of fuel. The recent increment by Oando, MRS and other oil marketers comes days before the NNPC officially becomes a private company.

On Tuesday, President Muhammadu Buhari will officially unveil NNPC as a private entity, with Nigerians having opportunity to own stake in the firm.