Mele Kyari, the
group managing director of the Nigerian National Petroleum Corporation (NNPC),
says subsidy payments on refined petroleum products are now a thing of the
past.
The GMD made his
stance known during an interview with Nancy Iloh on Africa Independent
Television (AIT) on Monday.
“As at today,
subsidy/underrecovery is zero,” he said.
“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.”
Under recovery is
the cost incurred by the NNPC on behalf of the federal government to keep the
pump price of petrol at the previous benchmark price of N145 per litre.
However, a drop in
the price of crude oil eliminated the under recovery and the landing cost of
petrol fell below the benchmark price.
In response to
market forces, the federal government approved a reduction in the pump price of
petrol from N145 to 125 per litre.
It also mandated the
Department of Petroleum Resources (DPR) to adjust retail price of petrol
monthly in response to market dynamics.
In line with the
directive, the DPR announced that the pump price of petrol would be adjusted to
N123.50 per litre for retail in April.
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