The era of petrol subsidy is gone forever, the Group Managing Director, Nigerian National Petroleum Corporation NNPC , Mele Kyari, said on Monday.
Mele Kyari, who spoke during a live programme on African Independent Television, stated that with the current fluctuations in global crude oil prices, the cost of refined products would be determined by market forces going forward.
He explained that although the NNPC was not responsible for petroleum products pricing, the country was currently transiting into a market situation where the forces of demand and supply would determine the cost of Premium Motor Spirit.
Asked whether there was still petrol subsidy or under-recovery on PMS by the NNPC, Kyari said, “Subsidy and under-recovery are zero today. And it is zero forever.”
In March, the Federal Government reduced the pump price of petrol from N145/litre to N125/litre.
On April 1, the price was further reduced to N123.50/litre, although many Nigerians expected a much lower cost.
The Petroleum Products Pricing Regulatory Agency explained that the reduction was due to the sharp fall in the price of crude oil in the international market following the outbreak of coronavirus.
When told that Nigerians expected a further reduction in petrol price as a result of the plunge in crude oil prices, Kyari explained that several factors determined price crash.
He said, “I know that we are transiting into a market situation where the forces of demand and supply will regulate the pricing while avoiding the possibility of abuses that can actually in .