The Nigerian National Petroleum Corporation on
strongly advocated the complete halt in the
subsidy on petrol.
Although the corporation admitted that it was
aware of the
massive nationwide protests and industrial
actions that took
place in January 2012 when the Federal
announced the complete withdrawal of subsidy
on petrol, it
however maintained that the continued payment
was not sustainable.
Subsidy is the difference between the Expected
Price of fuel and the actual or retail price that is
consumers for the product at petrol stations as
the Department of Petroleum Resources.
The Group Coordinator, Corporate Strategy and
NNPC, Mr. Timothy Okon, explained that since
does not control the prices of crude oil, its
creates fiscal instability in the country, a situation
impacts negatively on Nigeria’s revenue.
Okon spoke at the 2015 Oloibiri Lecture Series
Forum organised by the Society of Petroleum
He noted that when crude oil prices came down
to about $40
per barrel, subsidy was not paid during that
period as the
landing cost of the product was either equal of
than its market value.
Okon explained that subsidy on petrol creates
distribution of revenue, round tripping and
over of funds from one year to another in a
manner that was
difficult to control by the Federal Government.
“So, from the technical analysis made, it is
subsidy is real. And from our analysis, we look at
something that should go because it is not