Group Managing Director (GMD) of the Nigerian National Petroleum Corporation (NNPC), Mele Kyari, has disclosed that the Federal government will continue to subsidize the price of Premium Motor Spirit aka petrol till 2022.
Kyari disclosed this Wednesday while speaking at a stakeholders’ hearing organised by the Senate Joint Committees on Finance, National Planning, Foreign and Local Debts, Banking, Insurance and other financial institutions and Petroleum Resources on the 2022-2024 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (MTEF-FSP) in Abuja.
He said the decision to exit the subsidy regime would be determined by the outcome of the ongoing negotiations between the authorities and organised labour
Kyari acknowledged that an increase in the price of petrol will have a direct impact on the wellbeing of the citizenry and national security, assuring Nigerians however that government would exit subsidising of product consumption as soon as the Petroleum Industry Act (PIA) becomes fully operational.
Kyari had recently said that NNPC pays between N100 billion and N120 billion monthly to keep the pump price of petrol at N162 per litre.