The Minister of State for Petroleum Resources, Timipre Sylva, has called on Nigerians to prepare for an increase in petrol pump price as crude oil price goes up above $60 per barrel.
The former Governor of Bayelsa further stated that with no provision of subsidy in the 2021 budget, the Nigerian National Petroleum Corporation (NNPC) can’t continue to bear the cost of under-recovery.
Sylva stated this at the official launch of Nigerian Upstream Cost Optimisation Program on Tuesday.
According to Sylva: “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.”
Currently, the pump price of petrol ranges from N160–N165, the price set when crude traded just above $43 per barrel, a few months ago.
A statement released to newsmen by top officials of two major marketers’ associations a few moments ago suggested that pump price of petrol should be between N185 and N200 per litre to reflect the further rise in crude oil prices.