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The Nigerian National Petroleum Corporation NNPC has said Nigeria would no longer pay subsidy on premium motor spirit PMS, commonly callled petrol, with the ongoing global oil price decline.
In a statement signed by NNPC spokesman, Kennie Obateru, in Abuja on Monday, the Group Managing Director, Mele Kyari said ‘there is no subsidy and it is zero forever, going forward there will be no resort to either subsidy or under recovery of any nature.’
“NNPC will play in the marketplace, it will just be another marketer in the space. But we will be there for the country to sustain security of supply at market price,” Kyari said.
He stated that NNPC is a transparent organisation, probably the only company in the world that publishes its monthly financial and operations reports and the corporation was proud of the initiative.
He further assured Nigerians of NNPC’s commitment and observance of transparency and accountability in all its transactions. Adding that as at Sunday, Nigeria produced 2.3 million barrels of crude oil, including condensates as the country plans to ramp up production to three million barrels daily in the nearest future.
The NNPC GMD also stated Nigeria was endowed with premium crude oil grades supplied to Europe, Asia and India. Adding that notwithstanding the COVID-19 pandemic which had affected demand and supply fundamentals, all Nigeria’s export terminals were still in operations.
He said: “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 dollars we saw last week. I’m certain, all things being equal, oil price will bounce back.”
He therefore assured Nigerians of ample supply and distribution of petroleum products during the lock-down period occasioned by the contagion.
