The Nigerian National Petroleum Corporation (NNPC) has announced that the official price of a litre of Premium Motor Spirit (PMS), otherwise known as petrol, will remain at N162.
The report said negotiations with the Organised Labour over the price of petrol were still ongoing.
Early Tuesday, the crude oil price hit $74.72 per barrel on the international market.
NNPC’s Group Managing Director (GMD), Malam Mele Kyari, said Nigerians would continue to purchase petrol at N162 per litre until labour engagement is concluded.
Though the pump price of petrol should be N256 per litre based on the current crude oil price, the federal government, through the NNPC, has decided to pay the differential until labour and the government agree on a price.
According to him, President Muhammadu Buhari had told the corporation that it should do whatever it can legally to keep petrol prices within reach of Nigerians, especially at this time.
“But what this means is that we are taking money away from other purposes to pay under-recovery,” he said.
The corporation was not remitting zero naira to the federation account because of under-recovery payments, he said.
For energy and physical security of the country, the NNPC GMD said that the corporation is acquiring 20% equity in the Dangote Refinery.
According to him, the refinery, which will start producing in 2021, should not be left in the hands of Dangote alone to ensure market stability.
A business of this magnitude cannot be left with just a private sector player, he said.
Kyari stated that the rehabilitation of Warri and Kaduna refineries will be awarded in July.
To ensure that their rehabilitation happens simultaneously with the already awarded Port Harcourt Refinery, he said.
The banks are providing the funds for the rehabilitation, he said.