By Godson Ikiebey-
The group managing director (GMD), Nigerian National Petroleum Corporation (NNPC), Mele Kyari, has said that it is very difficult to make fuel available at 145 naira per litre.
Kyari made this known while speaking on Wednesday, July 10, 2019 during a courtesy visit to Ahmed Lawan, the senate president, at the National Assembly Complex in Abuja. The NNPC GMD said that the cheap price of petrol encourages smuggling. He said:
“The N145per litre fuel price regime in Nigeria runs against the N350 per litre most of the other West African countries operate, encouraging smuggling. “It is even very difficult for us to make the product available at N145”.
Kyari who was accompanied by Maikanti Baru, his predecessor, said the corporation would work closely with the national assembly to ensure quick passage of the bills that would encourage the growth of the oil and gas sector.
Speaking, Baru said the visit was meant to canvass the senate’s support for the quick passage of the Deep Offshore Amendment Bill which has the potential of boosting federal government’s revenue by about $5 billion per annum.
Shedding light on the significance of the bill, he explained that the nation had been virtually losing revenue running into billions of dollars due to delay in the review of the extant Deep Offshore Act which stipulates that the fiscal terms could be reviewed when the price of crude oil had surpassed the $20 barrel mark and production had gone on in those acreages consistently for 15 years.
He said the amendment bill proposes to raise the royalty paid on deep offshore production in order to ensure a higher revenue take for government, saying that no operator could oppose such a move as it was fair going by current market realities.