New Telegraph

NNPC: Why fuel subsidy remains

The Federal Government has said fuel subsidy will remain as it has made provisions for in the 2022 budget despite the Petroleum Industry Act (PIA) and expected scrapping of subsidy on petroleum products,. Group Managing Director (GMD) of the Nigerian National Petroleum Corporation (NNPC), Mele Kyari, said subsidy on petrol would remain until the PIA comes into effect. Kyari, who spoke at an interactive session organised by the Senate Joint Committees to deliberate on the Medium Term Expenditure Framework and Fiscal Strategy Paper (MTEF/ FSP), said subsidy was not provided for in the 2021 budget, but included in the 2022 budget proposal. He explained that the proposed provision was as a result of the wide gap between the landing cost of petrol, which is N256 per litre and N162 pump price at the filling stations. According to Kyari, the NNPC has a responsibility to ensure the provision of petrol for the public, adding that the organisation would continue to fulfill its obligations.

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