Operators in the oil and gas sector and stakeholders are uncomfortable with the continued rise in Petrol. The cost of subsidising Premium Motor Spirit, popularly called petrol, has jumped to N947.51bn between January and April 2022.
They showed analysis by Nigerian National Petroleum Company Limited on Wednesday. The monthly rise in PMS subsidy spending by the oil firm, though they described it as an under-recovery/value shortfall.
The oil firm had informed the Federation Account Allocation Committee that it would deduct an estimated value shortfall. N874.5bn in May 2022 proceeds are due for sharing at the June 2022 FAAC meeting.
NNPC has been the sole importer of petrol in Nigeria for several years running. Therefore, the firm has also been subsidizing the commodity all these years.
The National Public Relations Officer, Independent Petroleum Marketers Association of Nigeria, Chief Ukadike Chinedu, stated. ”Fixing the refineries is our priority. Considering the gains in the economy and the country, managers of this country should encourage modular refineries in Nigeria. Secondly, even small-scale refineries should encourage to come up to boost the moribund refineries we have. Nigeria can even build a brand new refinery from the scratch. It will help us.”
Meanwhile, the NNPC, in its most recent presentation to FAAC, informed the committee that more deductions would be from the three tiers of government would share this month.
-Punch.