It’s impossible to maintain N170 per litre fuel price – Kyari

The group managing director of the Nigerian National Petroleum Company Limited (NNPC), Mele Kyari, has disclosed that the oil company cannot maintain a pump price of N170 per litre for Premium Motor Spirit (PMS), popularly known as petrol.

Kyari made this known on Wednesday, November 9, while speaking at the legislative transparency and accountability summit organised by the house of representatives committee on anti-corruption in Abuja.

The NNPC boss stated that, “It is not possible for Nigerians to buy fuel at N170 per litre when the actual cost is three times higher than that value.

“For instance, today, when PMS comes into this country, we transfer to marketers at N113 per litre for us to ensure that it’s N165 at the pump.

“So, you must sell at N113 to them to be able to deliver at N165, that means whatever the cost, anything after that value is subsidy, and somebody has to pay for it.

“Everyone knows the price of fuel around the world. There is nowhere that you can land a litre of PMS to the pumps at the N445 (to a dollar) exchange rate. It is not possible.

“In some places, they are subsidising up to N290 on every litre.

“Anywhere you have arbitrage, you will have these issues. People cannot hold NNPC accountable for these issues because it is a value chain that involves everything and everybody.

“You cannot price it at the market today because of the socio-economic impact on the prices of PMS.

“Every country is doing something about high energy costs. Some have even removed taxes on petroleum.

“NNPC will no longer go to FAAC because we are expected to pay taxes, dividend and royalty,” he added.

Kyari a;so stated that he has been receiving death threats from suspected oil thieves over the reforms he was spearheading in the oil and gas industry.

However, he noted that he was not deterred by the threats.

SOURCE: thestreetjournal.org