Operators in the oil and gas sector remain uncomfortable with the continued rise in the amount spent in subsidising PMS. As it jumped to N947.51bn between January and April 2022.
NNPC has been the sole importer of petrol into Nigeria for several years running. The company has been subsidizing the good for years. Billy Gillis-Harry, President of Petroleum Products Retail Outlets, said the price of gasoline without a subsidy was typically more than the price of diesel. The approved subsidised pump price of PMS in Nigeria is between N162 to N165/litre.
The oil company spent N210.38 billion, N219.78 billion, N245.77 billion, and N271.58 billion,over the course of the four-month period. “This is unsustainable- the National Public Relations Officer, Independent Petroleum Marketers Association of Nigeria, Chief Ukadike Chinedu, stated.
“The managers of this country should encourage modular refineries in Nigeria. Second, efforts should be made to encourage the development of small refineries in order to revitalize our ailing refineries. Nigeria can even build a brand new refinery from the scratch, it will help us.”
Commenting on the development, a former President, Association National Accountants of Nigeria, Dr. Sam Nzekwe, claimed that the money spent on the gasoline subsidies used to solve other econmic problems. “we have been pleading with the government to fix our refineries so that we may refine our oil. We can’t continue spending this much on petrol subsidy,” he stated.
The NNPC informed the committee that money be deduct from the three levels of government allocation.
Distribution of May 2022 revenues at the June 2022 FAAC meeting, must cover the estimated value gap of N874,503,649,663.98bn.
-Punch