The Group Chief Executive Officer of Nigerian National Petroleum Company Limited, Mele Kyari has stated that the concept of reducing fuel prices by increasing local refineries is erroneous.
Kyari stated this during an interview with Arise TV on Thursday, June 1.
According to him, even with the increased local production of petrol, the price won’t reduce because the refineries will also input the cost of production among other things.
He said;
“There is a notion that if the product is processed locally, prices will reduce. Let me make it clear that it is not going to change anything. If you produce locally, the refineries will also input the cost of production and other things and it will be sold at the current price.
“There will also be no subsidy when local production starts because there is no cash-to-back subsidy, this country no longer has the resources to continue with subsidy.”
In another interview with Channels Television, Kyari said the queues experienced at fuel stations across the country will clear up before Saturday, June 3.
He said;
“I don’t see it staying beyond another day or two, maximum. It can actually be on Saturday. We have supplies. The key trouble with the PMS system is supply, but I have supplies.
“There are over 810 million litres of PMS in depots, tanks and fuel stations across the country, so you don’t have the problem of transferring those from marine to land, you already have them on the ground.”
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