NNPC GMD Blames Fuel Scarcity, Hike In Diesel Price On Non Functionality Of Refineries
Group Managing Director of Nigerian National Petroleum Company (NNPC) Limited, Mr Mele Kyari has attributed the current fuel scarcity and hike in the price of diesel to the non functionally of the refineries in the country.
He also said that over 200 illegal facilities were operating in the country which had made matters worse.
Appearing before the House of Representatives Joint Committee on Petroleum Resources (Downstream) investigating the increase in prices of diesel and cooking gas on Tuesday, Kyari also absolved the oil rich communities of complicit with the oil thieves in the Niger Delta.
The GMD also told the House Committee led by Hon. Abdullahi Gaya that unless the oil marketers were allowed to import the product, the situation may persist.
He also stated that the Ukraine and Russia war added pressure on countries to increase supply of petroleum products, adding that the solution was also on the restoration crude oil production.
Kyari also said it was not possible to return the country to the subsidy regime.
He said, “Community members are not the thieves. Absolutely not. Everything we are doing is to incorporate the communities into the process of protecting these assets. The National Assembly in its wisdom also included trust fund for the communities in the Petroleum Industry Act so that they become parts and parcel of the system.
“Criminals in the Niger Delta come from all parts of the country. At these illegal refineries there are people from all works of life there.
“Many of these are completely armed and the community members cannot even report them. They are helpless because if they report them, they will come after them. My suggestion this moment is deliver supply, make sure oil marketers are also able to import, and there’s need to engage the CBN to create more dollars. Once we do this, dollars will be allocated for the import of AGO. The will also dampen the effects of going to buy dollar in the open market. So, you can have cheaper dollar and definitely it will affect the price. Secondly the regulatory institutions, the authority, consumer protection council and NNPC, I suggest we need to sit jointly to see how arbitrage can be managed so that the end user is not completely exploited.
Today countries are toying with subsidy because prices are so high because they don’t think they can manage inflation associated with it.
Also speaking, the Chief Executive Officer of the board of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NPRA), Mr Farouk Ahmed also advocated for the resuscitation of the refineries to fire up the production level of the petroleum products in the country.
He regretted the present exchange rate, saying it was affecting importation of the product, adding that the war in Ukraine had also not helped the country’s oil sector
