Sylva Asks Nigerians to be Ready to Bear the Pains of Increased Petrol Pump Price
By Ikenna Omeje
As the price of crude oil inches above $60 per barrel, the Minister of State, Petroleum Resources, Chief Timipre Sylva has asked Nigerians to be ready to bear the pains of increased petrol pump price.
Sylva who gave the admonition while speaking at the official launch of Nigerian Upstream Cost Optimisation Programme (NUCOP), said with no provision of subsidy in the 2021 budget, the Nigerian National Petroleum Corporation (NNPC), cannot continue to bear the cost of under-recovery.
Meanwhile, the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), few days ago announced an increment in the retail pump price of fuel, from N160 to N178 per litre, citing increment in the cost of depot price of PMS from N157 to N160 per litre.
According to the Minister, while government revenue has improved by the rise in crude oil price, it cannot be fretted away in subsidy payment.
He said: “Since we are optimizing everything, NNPC needs to also think about the optimization of product cost because as we all know oil prices are where they are today, $60.
“As desirable as this is, 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 cannot continue to take this blow. There is no way because there is no provision for it.
“As a country, let us take the benefits of the higher crude oil prices and I hope we will also be ready to take a little pain on the side of higher product prices”, he stated.