The Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mallam Mele Kyari has disclosed that going forward there would be no more subsidy on the pump price of petrol.
Kyari, according to the Twitter handle of NNPC, made the disclosure during an interview with AIT on Monday.
Kyari said: “As at today, subsidy/underrecovery is ZERO. Going forward, there’ll be no resort to either subsidy or under-recovery of any nature. NNPC will just be another player in the market space. But we’ll be there for the country to sustain security of supply, @ the cost of the market”.
The Federal Government had last month reduced the pump price of petrol from N145/litre to N125/litre. On April 1, the price was further reduced to N123.50/litre.
The reduction was due to the drastic fall in the price of crude oil in the international market following the outbreak of the Coronavirus.
Kyari also allayed fears of petrol scarcity, saying “Today, we have a very robust products supply & distribution from the loading depots up to fuel stations nationwide. We also have very good understanding with our strategic partners: the governors, marketers, depot owners, PTD, etc. There are no issues whatsoever.”
On the current mood in the internationally market, he said: “The key issue in crude oil business is market fundamentals of demand/supply. I believe COVID-19 will subside & countries will come back to life. I don’t see oil price going below the $20 we saw last week. I’m certain, all things being equal,oil price’ll bounce back”.
He noted that NNPC aspiration was to grow Nigeria’s production to 3mbpd.
“As at yesterday, our production has, for the first time in many years, risen to 2.3mbpd. We believe this will grow & the contribution of local companies in this regard will be meaningful.”(outlook Media).