The Group Managing Director (GMD) of the Nigerian National Petroleum Corporation (NNPC), Mr. Mele Kyari, on Thursday, 25th March 2021, said the NNPC would no longer continue to bear the subsidy burden of the nation, at the weekly presidential ministerial media briefing at the Presidential Villa, Abuja.
Kyari said Petrol is currently being sold below the cost of importation, and the NNPC has had to pay the difference which costs the corporation between ₦100 billion – ₦120 billion a month to keep the pump price at the current levels. According to him, “we are in a situation where we are trying to exit subsidy or underpriced sale of PMS. Until we get in terms with the full value of the product in the market”.
He stated that “The Nigerian fuel is their primary fuel. We are supplying almost everybody in the West African region, so it is very difficult to continue this because we have our own issues and that is why the eventual exit from this is completely inevitable”.
According to him, engagements are currently going on for the eventual removal of subsidy on PMS. He added “The government is very concerned about the natural impact of price increases on transportation and other consumer segments of our society and as soon as those engagements are taken to the logical conclusion, I am sure that the market price of PMS will be allowed to play at the right time.”
Story: Ene Ken-Yawe
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