The Nigerian National Petroleum Corporation, NNPC, on Thursday, has vehemently pushed for the complete halt in the payment of subsidy on petrol.
The Group Coordinator, Corporate Strategy and Planning, NNPC, Mr. Timothy Okon, explained that since government does not control the prices of crude oil, its fluctuation often creates fiscal instability in the country, a situation that impacts negatively on Nigeria’s revenue.
Speaking at the 2015 Oloibiri Lecture Series and Energy Forum organised by the Society of Petroleum Engineers in Abuja, the corporation admitted that it was aware of the massive nationwide protests and industrial actions that took place in January 2012 when the Federal Government announced the complete withdrawal of subsidy on petrol, it however maintained that the continued payment of subsidy was not sustainable.
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 even lower than its market value.
Okon explained that subsidy on petrol creates uneven distribution of revenue, round tripping and unnecessary carry-over of funds from one year to another in a manner that was difficult to control by the Federal Government.