Mele Kyari, Group Managing Director of Nigerian National Petroleum Company Limited (formerly Nigerian National Petroleum Corporation), has stated that NNPC cannot maintain a pump price of N170 per liter for Premium Motor Spirit, known as petrol or fuel.
During the Legislative Transparency and Accountability Summit hosted by the Committee on Anti-Corruption in the House of Representatives on Wednesday in Abuja, Kyari claimed that the fuel cost for landing was three times higher.
N170/liter fuel price is unattainable - NNPCL
"You can't buy fuel at N170 when your actual cost is three times that amount," Kyari said. "For example, when PMS enters the country today, we transfer to marketers at N113 per liter to ensure N165 at the pump."
Therefore, you must sell to them for N113 to deliver for N165, making anything above that price a subsidy. Someone must pay for it. "Everyone is aware of the expense of PMS worldwide.
But unfortunately, there is currently no location where you can purchase a liter of PMS for the exchange rate of N445 (to the dollar). Simply put, it is not feasible.
"In some areas, you're subsidizing up to N290 per liter." It is impossible to avoid all the wrong things happening under this regime, such as round tripping, cross-border smuggling, and document forgery."These issues will arise anywhere there is arbitrage."
As long as arbitrage exists, these problems will persist, and since it is a value chain involving everyone and everything, NNPC cannot be held responsible for them.
"You can't price it in the market right now because of the socioeconomic impact on PMS prices." Every country is taking action to address high energy costs.
Some have removed petroleum taxes; this is a subsidy. Because we are required to pay taxes, dividends, and royalties, NNPC Limited will no longer go to FAAC."
The GMD also claimed that as a result of the reforms he led in the oil and gas industry, he had been the target of death threats.
Kyari continued, though, that the threats had not stopped him.
Without holding back, he declared, "I want to say that this industry is about to change. "There is a lot of change, and it's costly and personal for many people, including myself." So I can say that there is a threat to life.
"I've received several death threats, but we're not concerned." No one dies, we believe, unless it is his time. "However, this is the price of progress."
People will react when they have moved away from what they are used to and into something new that will take away their value and benefit."That reaction benefits us all, and we will work together to ensure it is successful."
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