The Nigerian Government on the 19th July 2022 formally unveiled the launch of NNPC Ltd. It implies that NNPC LTD is now a fully commercialized public firm with the Objective of profitability.
Following the consistent increment on the price of Crude oil and rise in the rate of foreign exchange, it is now obvious that Federal Government has tactical Intervened by closing the price gap in the landing cost of PMS and the Selling pump price in Nigeria.
PMS importers have lamented few weeks ago that the landing cost was above #700 per litre when Crude was $80 per barrel then. As we speak, crude oil is above $90 per barrel, yet Nigerians are still buying PMS at the rate of #600 per litre.
Meanwhile, we are aware that the current NNPC Ltd is not a charitable organization or a government funded organisation anymore.
The argument whether subsidy is back in Nigeria came to end this week when a document published by the Federal Account Allocation Committee (FAAC), sighted by some reporters showed that the Nigerian Liquefied Natural Gas (NLNG) paid $275m, naira equivalent of N169.4 billion
as dividends to Nigeria through NNPC Limited for the month of August. The document indicates that NNPC LTD used part of the money in question to pay for PMS subsidy for the month of August 2023.
The happenings or effect of external events in the international market will adversely reflect on the pump price of PMS in Nigeria, because we solely rely on the importation of PMS from the international market.
The Nigeria Economy will experience stability only when we commence production of PMS in Nigeria.
Nigeria is the only shameless OPEC Member nation that has dumped it’s own Refinery, and busy importing from a refinery owned by another nation.
Mr President has announced that the Port Harcourt Refinery will commence operations by December 2023 and we are hopeful because the speed of the project of recent is encouraging.
Dr Joseph Obele.
IPMAN chairman,
Rivers state.
A Lecturer,
Ken Saro Wiwa Polytechnic,
Bori
