Following fluctuation in the price of petrol in the country, it has been reported that the Group Managing Director of the Nigerian National Petroleum Corporation NNPC, Mallam Mele Kyari, has disclosed that the price of petrol should be more than N280/litre at which Automotive Gas Oil, also known as diesel, is being sold.
He reportedly disclosed this on Tuesday during a programme on Channels Television .
According to him, “Today we are paying N162/litre (for petrol). I am sure many people buy AGO (diesel) in the market and it is selling at N280/litre in the market today. So (there is) nowhere in the world diesel sells more expensive than PMS”.
“That means that the price of petrol anywhere in the world, assuming you are going to sell it at the market, you are going to sell it above that price you have seen.”
He stated that, “Today, from what I can remember, I checked the number two days ago; what would we sell if we are at the filling station today and recover our cost fully is around N256/litre.”
According to further reports, Kyari disclosed that the ongoing meetings between the government and labour on petrol price had not been concluded and could drag beyond next July. He also stated that negotiations on the cost of petrol would have to be concluded to enable the government to effect a change in the cost of the commodity.
Kyari further said that government money would not be used for the stake acquisition on the proposed acquisition of 20 per cent stake in Dangote refinery, Kyari said government money would not be used for the stake acquisition.
He disclosed that, “We are borrowing on the back of the cash flow of this business. We know that this business is viable, it will work and it will return dividends. It has a cash flow that is sustainable because refinery business, in the short term, will continue to be sustainable. That’s why banks have come forward to lend to us, so we can take equity in this.”
From further reports Kyari disclosed that the Dangote refinery would start production by 2022, adding that it would deliver over 50 million litres of petrol into the Nigerian markets.
Kyari reportedly said that, “We are also working on our refineries, to ensure that we fix them. We have awarded the contract for Port Harcourt refinery rehabilitation. And ultimately we are going to close that of Warri and Kaduna very soon in July, so that all of them will work contemporaneously.”
He stressed that, “The net effect is that you are going to have an environment where Nigeria becomes the hub of petroleum products and supply. It’s going to change the dynamics of petroleum supply globally in the sense that the flow is coming from Europe today and it is going to be reversed to some other direction.”