The Minister of State, Petroleum Resources, Chief Timipre Sylva has admonished Nigerians to be ready to bear the pains of increased petrol pump price as crude oil price climbs above $60 per barrel.
Speaking at the official launch of Nigerian Upstream Cost Optimisation Program on Tuesday, Sylva said with no provision of subsidy in the 2021 budget, Nigerian National Petroleum Corporation, NNPC, cannot continue to bear the cost of under-recovery.
Presently, the pump price of petrol ranges from N160 –N165, the price set when crude traded just above $43 per barrel, four months ago.
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
More protest loading….
Our useless goverment is increasing Taxation when production is falling which has led to Massive inflation as producers have simply passed the excess cost (taxation) unto the consumers.
The same goverment is looking for ways to further compound the misery suffered by the Nigerian consumer by increasing the price of petrol which is the only stable and affordable source of energy available in Nigeria.
By the Time they increase petrol price÷
> Cost of Transportation increases
>Cost of production increases
> it will lead to a disastrous increase in the cost of goods and services that are already at a all time high.