The Nigerian National Petroleum Corporation (NNPC) has today disclosed that contrary to some claims on the price of petroleum across the country, it says the corporation is maintaining the N162/litre price until negotiations are over with the organised labour.
The Group General Manager, group public affairs division of NNPC, Kenny Obateru made this known in a statement today.
There were apprehensions by members of the public over the statement accredited to the Group Managing Director (GMD) of the NNPC, Mele Kyari where he disclosed yesterday that the corporation was tired of footing the subsidy bill as it was running into billions a month, and is not sustainable.
Kyari had yesterday while interacting with newsmen disclosed the corporation could no longer sustain the burden of underpriced sales of the fuel as the market realities have gone beyond that.
The GMD revealed that NNPC pay between N100 – N120 billions on monthly basis as a subsidy on petroleum pump price.
Obateru in his statement buttressed that the NNPC bears the burden of the subsidy, though the current price will be maintained until engagement with the organised labour and other stakeholders are over.
He said the NNPC was avoiding any pre-emptive measure that will thwart the current negotiation with the organised labour, before then, the ex-deport price shall be maintained.
Obateru added, the corporation had made provision for robust stock of petroleum product in its strategic deport across the country to address eventuality and keep the nation supplied at all times.
He warned independent marketers to avoid sending bad signals through the arbitrary increase in product price through hoarding of the product.
The NNPC spokesman also warned against panic buying as the corporation is guaranteeing its energy security.
The State Minister for petroleum, Timipre Sylva had in February warned the general public to get ready to pay the price of fuel as the price of crude had to keep on rising.
Accordingly, the increase in the price of crude oil is good for the Nigerian economy as it boosts the county’s revenue needed for the implementation of the 2021 budget, improves crude oil receipts, and consequently bolsters foreign exchange inflows.
However, a prolonged price hike would eventually result in a price hike of the end product, this would conversely impede the purchasing power of an average Nigeria is currently inflation has hit the roof.