Mohammed Shosanya
The Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPC), disclosed that the price of Premium Motor Spirit (PMS), commonly known as fuel, would soon experience a significant decrease.
The NNPC CEO,who spoke in an interview with Arise TV, added that higher prices would result in reduced consumption, estimating a 30% decrease in fuel consumption.
According to him, the removal of fuel subsidies would lead to increased participation in the importation of refined products, resulting in a more competitive market.
He added that the Nigerian government did not fund the subsidy; instead, the burden fell on the NNPC, which had become unsustainable.
Kyari emphasised that the current prices at NNPC stations reflect the prevailing market rates. He highlighted the positive outcome of removing the subsidy, as it would attract new players to the oil market, fostering competition.
The NNPC CEO added that higher prices would result in reduced consumption, estimating a 30% decrease in fuel consumption. This decrease in demand,he also said,would reduce the need for foreign exchange, benefiting all market players, including the NNPC.
Kyari expressed concerns about exchange rate impact on fuel prices, stating that President Bola Tinubu’s announcement that the Federal Government would no longer subsidise PMS would lead to a single exchange rate market for everyone.
He explained that once this occurs, all players in the market, including the NNPC, will access foreign exchange at the same exchange rate, minimizing conflicts in pricing.
