By Olivia Isibor (AGENDAWATCHDOG) – According to Mr. Mele Kyari, the Managing Director of the Nigerian National Petroleum Corporation, NNPC, the inability to find an appropriate price for petrol has forced the continuation of the subsidy scheme.
Kyari said this on Tuesday, on Channels Television, while explaining why the national oil company is purchasing a stake in Dangote Oil Refinery.
“The reality is that we cannot afford it,” Mr Kyari said.
“But also the second reality is if you don’t do something smart, you could end up throwing prices at Nigerians that are well above prices that they should pay for.”
The NNPC chief said the government is still engaging with organised labour and other stakeholders on how to properly price the product.
“The engagement is aimed at making sure there is a reasonable level of pricing that we can do that will recover the cost,” he said.
The NNPC is currently the sole, official importer of petroleum products into the country. While its landing price is about N256 per litre, according to Mr Kyari, petrol sells for N162 to N165 in most parts of Lagos.
In March 2020, the Federal Government said it would allow market forces to dictate the pump price of petrol.But after oil prices rose in the preceding months, the Federal Government decided not to adjust the price correspondingly under pressure from organised labour.