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NNPC: No more subsidy on petrol pump price

Valentine Chinyem

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The Nigerian National Petroleum Corporation (NNPC) has said that there would be no more subsidy on the pump price of petrol.

This is just as the Federal Government has expressed readiness to join other members of the Organisation of the Petroleum Exporting Countries (OPEC), in taking necessary measures in stabilising the crude oil market as well as preventing the possibility of a global economic meltdown.

Recall that the Federal Government had on April 1 reduced the pump price of petrol to N123.50/litre, after earlier reducing the price from N145/litre to N125/litre in March, due to the drastic fall in the price of crude oil in the international market as a result of the COVID-19 (coronavirus) pandemic

According to the official twitter handle of the Corporation, the Group Managing Director of the NNPC, Mallam Mele Kyari, was quoted to have made the disclosure on Monday, during an interview on Moneyline, a programme aired by Africa Independent Television (AIT).

He 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 at the cost of the market.”

He further allayed fears of petrol scarcity saying, “Today, we have a very robust products supply and 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.”

Optimistic that oil price would bounce back once COVID-19 pandemic subsides, Kyari noted that the NNPC’s aspiration was to grow Nigeria’s production to 3mbpd.

“The key issue in crude oil business is market fundamentals of demand/supply. I believe COVID-19 will subside and 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.

“As at yesterday (Sunday), our production has, for the first time in many years, risen to 2.3mbpd. We believe this will grow and the contribution of local companies in this regard will be meaningful, he added.