Minister of State, Petroleum (Oil), Senator Heineken Lokpobiri, has addressed the concerns raised by various individuals and organizations regarding Nigeria's petrol subsidy.
Despite President Bola Tinubu's statement on May 29, 2023, asserting that Nigeria was no longer subsidizing petrol, several figures, including former governors and industry officials, claimed that the government was still paying subsidies.
In an interview marking the 25th anniversary of Nigeria's democracy, Lokpobiri explained that the Nigerian National Petroleum Company Limited (NNPC) had the responsibility to intervene when necessary. He mentioned that the NNPC informed him that Nigeria's daily petrol consumption ranged from 50 million to 60 million liters, contradicting the figures given by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) last year.
Lokpobiri emphasized that while the president had declared the removal of subsidies, strategic interventions might still occur from time to time. He defended the decision to remove fuel subsidies, stating that without this action, Nigeria could have faced challenges similar to Venezuela. He also mentioned that the Port Harcourt refinery was expected to commence operations before the end of the third quarter of the year, based on the information provided to him by the NNPC.
Addressing the discrepancy in fuel imports despite reduced consumption, Lokpobiri suggested inviting NNPC to clarify their public statements. He highlighted that Nigeria's daily oil production had increased to about 1.5 million barrels per day, attributing this growth to the reduction of oil theft.
Lokpobiri underscored the government's commitment to further increasing oil production and completing the rehabilitation of the country's refineries. He expressed confidence in the progress made and the potential for continued improvements in the oil and gas sector.
Tags
local