Mele Kyari, the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), has said there be no such thing as subsidy on petroleum products anymore.
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He said the NNPC would, henceforth, be like every other player in the market. He however said the corporation would ensure security of supply at the cost of the market.
The Cable reports that Kyari said this during an interview with Nancy Iloh on Africa Independent Television (AIT) on Monday.
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“As at today, subsidy/under-recovery 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.”
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A drop in price of crude oil had eliminated the under recovery, which is money paid by the Federal Government, through the NNPC, to keep pump price of petrol at N145, and the landing cost of petrol fell below the benchmark price.
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In response to market forces, the federal government approved a reduction in the pump price of petrol from N145 to N125 per litre. It also mandated the Department of Petroleum Resources (DPR) to adjust retail price of petrol monthly in response to market dynamics.
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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.