The Nigerian National Petroleum Corporation (NNPC) has said the official price of a litre of Premium Motor Spirit (PMS) otherwise known as petrol will remain N162 in July as engagement is still ongoing with organised labour on the appropriate pricing.
This is even as crude oil price hit $74.72 per barrel at the international market early Tuesday.
But speaking on Channels TV’s Sunrise programme on Tuesday, the Group Managing Director (GMD) of NNPC, Malam Mele Kyari, said though petrol pump price should be N256/litre based on current crude oil price, the federal government has left it at N162 until the engagement is completed.
He said President Muhammadu Buhari had told the corporation to do everything legally possible not to make petrol prices out of the reach of Nigerians, especially at this moment.
“What this means, however, is that we are taking out cash that could have been used for other things to pay under-recovery,” he said.
On the equity acquisition in Dangote Refinery, the NNPC GMD said the corporation is buying 20% equity in Dangote refinery for energy and physical security of the country.
He said the refinery, which will start production in 2021, shouldn’t be left in the hands of Dangote alone to ensure stability of the market.
“There is no way you can allow a business of this magnitude to be left with just a private sector player,” he said. Kyari revealed that the rehabilitation of Warri and Kaduna refineries would be awarded in July.
This is to ensure that their rehabilitation goes at the same time with the already awarded Port Harcourt Refinery, he said.