GROUP Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mele Kyari, on Tuesday stated that Nigeria would no longer subsidize petrol given the ongoing global decline in oil price.
Kyari disclosed this in a statement signed by Corporation’s spokesman, Dr. Kennie Obateru, in Abuja on Monday. “There is no subsidy and it is zero forever, going forward there will be no resort to either subsidy or under recovery of any nature.
“NNPC will play in the marketplace, it will just be another marketer in the space. But we will be there for the country to sustain security of supply at market price,” Kyari said.
He stated that NNPC is a transparent organisation, probably the only company in the world that publishes its monthly financial and operations reports.
He said the corporation was proud of the initiative, and assured Nigerians of NNPC’s commitment and observance of transparency and accountability in all its transactions. He said as at Sunday, Nigeria produced 2.3 million barrels of crude oil, including condensates.
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He maintained that the plan was for the country to ramp up production to three million barrels daily in the nearest future.
Kyari said Nigeria was endowed with premium crude oil grades supplied to Europe, Asia and India. He added that not withstanding the COVID-19 pandemic which had affected demand and supply fundamentals, all Nigeria’s export terminals were still in operations.
He said: “The key issue in crude oil business is market fundamentals of demand/supply. I believe COVID-19 will subside and countries will come back to life.
“I don’t see oil price going below the 20 dollars we saw last week. I’m certain, all things being equal, oil price will bounce back.”