The Group Managing Director, GMD, of the Nigerian National Petroleum Corporation, NNPC, Mele Kyari, has stated that the era of fuel subsidy is gone forever in Nigeria.
Kyari said that with the current fluctuations in global crude oil prices, the cost of refined petroleum products would be determined by market forces, going forward.
He explained that although the NNPC is not responsible for petroleum products pricing, the country is currently transiting into a market situation where the forces of demand and supply would determine the cost of Premium Motor Spirit, PMS.
Asked whether there was still petrol subsidy or under-recovery on PMS by the NNPC, Kyari stated clearly: “Subsidy and under-recovery are zero today. And it is zero forever.”
He added: “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.
“I do not see oil price going below the $20 per barrel price that we saw last week. I am certain, all things being equal, oil price will bounce back.
“As of yesterday, our production has, for the first time in many months and years, risen to 2.3mbpd”, he said.