- NNPC Says Goodbye to Petrol Subsidy
The Nigerian National Petroleum Corporation (NNPC) has said the era of petrol subsidy is gone forever.
Mele Kyari, the Group Managing Director, NNPC, disclosed this during a live programme on African Independent Television.
He said with the current fluctuation in global oil prices, the price of refined petroleum products would be determined by market forces going forward.
Kyari explained that although the corporation was not responsible for pricing, the nation was gradually moving into a market situation were the forces of demand and supply would determine the cost of petroleum.
He said, “I know that we are transiting into a market situation where the forces of demand and supply will regulate the pricing while avoiding the possibility of abuses that can actually come in.”
“So I know that ultimately the market forces will take its shape in a way that everybody will know the various requirements.”
He, however, explained that the decline in oil prices would only reflect on the cost of refined products in three to four-week time and not instantly as most people think.
Kyari said, “I don’t see oil price going below the $20 per barrel price that we saw last week. I’m certain, all things being equal, oil price will bounce back.”
On low crude production, he said: “As of yesterday, our production has, for the first time in many months and years, risen to 2.3mbpd.”