The Group Managing Director of the Nigerian National Petroleum Corporation, Mele Kyari, has said that the era of petroleum subsidy is history.
While appearing as a guest on a live television programme, Kyari disclosed that henceforth market force would determine the cost of refined products, given the current fluctuations in the prices of crude oil.
“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 said.
Kyari further said that the “NNPC will play in the petroleum market place” just as any other marketer.
Meanwhile, the Petroleum Products Pricing Regulatory Agency has explained that the reduction in the price of petrol is as a result of the sharp drop in price of crude in the international market.
The Executive Secretary, Abdulkadir Saidu, stated in Abuja on Tuesday that “PPPRA, in line with the government’s approval for a monthly review of Premium Motor Spirit pump price, hereby announces guiding PMS pump price of N123.50 per litre.
“The guiding price, which becomes effective on April 1, 2020, shall apply at all retail outlets nationwide for the month of April 2020.”
The agency also promises to, alongside other relevant regulatory bodies, monitor compliance to extant regulations.
The Nigerian Governors’ Forum and other stakeholders in the sector have given their nod to the subsidy removal.
In a communiqué signed by its chairman, Governor Kayode Fayemi of Ekiti State, the NGF expressed support in a market-driven fuel pump price.
Also, the Independent Petroleum Marketers Association of Nigeria said the removal of fuel subsidy would encourage more investments in the sector.
The President of IPMAN, Chinedu Okoronkwo, said, “This is what we have been asking the government to do because there is really no need for the government to be subsidising fuel annually with a huge amount of money.
“With the removal of subsidy, more modular refineries will come up. We already have Dangote Refinery in Lagos, which will soon start operations. Also, the Waltersmith Modular Refinery in Ibigwe, Imo State, is near completion. This means we won’t need to be refining our crude oil outside the country.”