The Nigerian National Petroleum Corporation (NNPC) has said the official price of a litre of Premium Motor Spirit (PMS), otherwise known as petrol, will remain N162 in July.
It said engagements were still ongoing with the Organised Labour on the appropriate price of petrol.
This is even as the crude oil price has hit $74.72 per barrel at the international market early Tuesday.
But speaking on Channels TV’s Sun Rise programme on Tuesday, the Group Managing Director (GMD) of NNPC, Malam Mele Kyari, said until the conclusion of engagement with Labour, Nigerians would continue to buy petrol at N162 per litre.
He said though the pump price of petrol should be N256 per litre based on the current crude oil price, the federal government, through the NNPC, had decided to continue paying the differential until an appropriate price is agreed upon by the government and Labour.
He said President Muhammadu Buhari had told the corporation to do everything legally possible not to make petrol price out of reach of Nigerians, especially at this moment.
“What this means however is that we are taking out cash that could have been used for other things to pay under-recovery”, he said.
He said it was not true that the corporation was now remitting zero naira to the federation account because of the under-recovery payment.
On the equity acquisition in Dangote Refinery, the NNPC GMD said the corporation is buying 20% equity in Dangote refinery for energy and physical security of the country.
He said the refinery, which will start production in 2021, shouldn’t be left in the hands of Dangote alone to ensure the stability of the market.
“There is no way you can allow a business of this magnitude to be left with just a private sector player,” he said.
Kyari revealed that the rehabilitation of Warri and Kaduna refineries would be awarded in July.
This is to ensure that their rehabilitation goes on at the same time as the already awarded Port Harcourt Refinery, he said.
He said the banks are providing the money for the rehabilitation.