Nigeria’s Minister of State for Petroleum Resources, Timipre Sylva, has explained that the current pump price of petrol across states is not too bad when other factors causing the hike are carefully considered.
The minister, who was addressing a press in Abuja on Monday, said he will not feel bad about buying petrol at N300 per liter.
Sylva observed that the pricing of the commodity product is determined by a lot of factors including the Naira exchange rate.
9News Nigeria reports that the minister said this during the 16th edition of the President Muhammadu Buhari Administration Scorecard (2015 – 2023).
The Minister admitted that so much money is being burnt by individuals and organizations to run their vehicles.
He also stated that the dream of making petrol price return to N40 per liter is not feasible.
Sylva said: “You asked if we can achieve N40 per liter. I will say ‘yes’, but this is dependent on if we can also achieve, within this period, improvement in the exchange rate.
The N40 per liter pricing is not realistic. But, as you asked me, how I would feel as a private citizen to buy petroleum products at N300 per liter, frankly, I would say I won’t feel bad knowing the kind of situation and if you compare Nigeria to other countries, then, you would also understand. If you convert the N300 to other currencies, then, you would probably understand.”
The minister explained that some modular refineries had been completed but still faced the challenge of crude oil supply. He assured that the rehabilitation of 60,000 barrels per day Port Harcourt refinery had been completed, adding that the refinery would commence production by the first quarter of this year.
He added: “We have taken 20 percent equity in the Dangote refinery. We have also taken 20 percent equity in the Azike refinery, in the Walter Smith refinery, we took 30 percent and in Dupaul, we’ve taken more than 20 percent. Drupal refinery has already concluded construction and it only remains to start operations. I’m sure within the next month, they will start operations
With Dangote, there’s already an agreement and we don’t have any problem. Some of these modular refineries have to get the crude from assets that are near them and they have these contracts with private sector owners of these assets; which we are intervening, to resolve
