National News Special Report
FUEL PUMP PRICE INCREASE LOOMS
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Afnews Editor
Jul 11, 2019
As the body language of Nigerian National Petroleum
Corporation (NNPC) continues to indicate a possible increase in fuel pump price,
Mele Kyari, group managing director of the Corporation has said it is very
difficult to make fuel available at N145 per litre.
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He made this known while speaking on Wednesday during a
courtesy visit to Ahmed Lawan, the senate president, at the National Assembly
Complex in Abuja.
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According to Kyari, the cheap price of petrol encourages
smuggling.
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"The N145 per litre fuel price regime in Nigeria runs
against the N350 per litre most of the other West African countries operate,
encouraging smuggling,ÔÇØ he said.
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"It is even very difficult for us to make the product
available at N145.ÔÇØ
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The GMD, who was accompanied by Maikanti Baru, his
predecessor, said the corporation would work closely with the national assembly
to ensure quick passage of the bills that would encourage the growth of the oil
and gas sector.
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In his submissions, Baru said the visit was meant to canvass
the senate's support for the quick passage of the Deep Offshore Amendment Bill
which has the potential of boosting federal government's revenue by about $5
billion per annum.
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Shedding light on the significance of the bill, he explained
that the nation had been virtually losing revenue running into billions of
dollars due to delay in the review of the extant Deep Offshore Act which
stipulates that the fiscal terms could be reviewed when the price of crude oil
had surpassed the $20 barrel mark and production had gone on in those acreages
consistently for 15 years.
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He said the amendment bill proposes to raise the royalty
paid on deep offshore production in order to ensure a higher revenue take for
government, adding that no operator could oppose such a move as it was fair
going by current market realities.
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Kayode Fayemi, chairman of the Nigeria Governors' Forum, has
also described the payment of subsidy as a 'drain on resources'.
