Timipre Sylva, Minister of State for Petroleum Resources, has said that Nigerians must be ready to bear the pain of high petrol price in the country.
He said this is due to the rise in crude oil price, which has risen above $60 per barrel.
Sylva said this while speaking at the official launch of Nigerian Upstream Cost Optimisation Program on Tuesday. He said there is no provision for fuel subsidy in the 2021 budget therefore making it impossible for the Nigerian National Petroleum Corporation (NNPC) to continue to bear the cost of under-recovery.
“Since we are optimizing everything, NNPC needs to also think about the optimization of product cost because as we all know oil prices are where they are today, $60.
“As desirable as this is, this has serious consequences as well on product prices. So we want to take the pleasure and we should as a country be ready to take the pain,” Sylva said.
“Today the NNPC is taking a big hit from this. We all know that there is no provision in the budget for subsidy.
“So, somewhere down the line, I believe that the NNPC cannot continue to take this blow. There is no way because there is no provision for it.
“As a country, let us take the benefits of the higher crude oil prices and I hope we will also be ready to take a little pain on the side of higher product prices”.