The Minister of State for Petroleum Resources, Timipre Sylva, has asked Nigerians to be ready to take the pains of increased fuel pump price due to the recent rise in the price of crude oil.
The Minister said this at the official launch of the Nigerian Upstream Cost Optimisation Program on Tuesday in reaction to the crude oil price which went above $60 per barrel. According to him, since there is no provision for subsidy in the 2021 budget, the Nigerian National Petroleum Corporation (NNPC) couldn’t continue to bear the cost of under-recovery.
Mr Sylva said, “Since we’re optimizing everything, NNPC needs to also think about the optimization of product cost because as we all know, oil prices are where they’re today, $60. As desirable as this, 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. 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 can’t continue to take this blow. There’s no way because there’s no provision for it. As a country, let us take the benefits of the higher crude oil prices, and I hope we’ll also be ready to take a little pain on the side of higher product prices.”
The current pump price of petrol which ranges from #160 –#165 was the price that was set when crude oil traded just above $43 per barrel, a few months ago.