Nigeria’s Minister of State for Petroleum Resources, Timipre Sylva, has explained that the current pump price of petrol across states is not too bad when other factors causing the hike are carefully considered.
The minister, who was addressing a press in Abuja on Monday, said he will not feel bad about buying petrol at N300 per litre.

Sylva observed that the pricing of the commodity product is determined by a lot of factors including the Naira exchange rate.

Naija News reports that the minister said this during the 16th edition of the President Muhammadu Buhari Administration Scorecard (2015 – 2023).

The Minister admitted that so much money is being burnt by individuals and organizations to run their vehicles.

He also stated that the dream of making petrol price to return to N40 per litre is not feasible.

Sylva said: “You asked if we can achieve N40 per litre? I will say ‘yes’, but this is dependent on if we are able to also achieve, within this period, improvement in the exchange rate.

“If we can achieve one dollar to one naira exchange rate within this time, we would also be able to improve on the pricing because these things are dependent on other factors; the exchange rate is also a factor. That’s just in the lighter mood but seriously speaking, I commend the agencies under the ministry for their hard work. The management of the supply situation, under this subsidy regime is not easy.

“We must all agree, so much money is being burnt in our vehicles, but somehow, we have to scoop funds to continue to keep the country wet.


“The N40 per litre pricing is not something that is realistic. But, as you asked me, how I would feel as a private citizen to buy petroleum product at N300 per litre, frankly, I would say I won’t feel bad knowing the kind of situation and if you compare Nigeria to other countries, then, you would also understand. If you convert the N300 to other currencies, then, you would probably understand.”

The minister explained that some modular refineries had been completed but still faced with the challenge of crude oil supply. He assured that the rehabilitation of 60,000 barrels per day Port Harcourt refinery had been completed, adding that the refinery would commence production by the first quarter of this year.

He added: “We have taken 20 per cent equity in the Dangote refinery. We have also taken 20 per cent equity in Azike refinery, in the Walter Smith refinery, we took 30 per cent and in Dupaul, we’ve taken more than 20 per cent. Dupaul refinery has already concluded construction and it only remains to start operations. I’m sure within the next one month, and they will start operations.

“We are hoping the Dangote refinery comes on stream this year and once our own rehabilitated refineries start to work, we will be able to get the country wet (with petroleum products).

“These are contractual issues. They need to have fixed stock guarantee…These are commercial considerations between the owner of the modular refinery and the supplier of crude oil. As a ministry, we intervene to ensure that they are able to iron out the issues between the two parties.

“With Dangote, there’s already an agreement and we don’t have any problem. Some of these modular refineries have to get the crude from assets that are near them and they have these contracts with private sector owners of these assets; which we are intervening, to resolve.”

Source: https:///N300-Per-Litre-Price-Of-Petro-Is-Not-Bad-Petroleum-Minister-Sylva

APC only came to government to wicked and suffer Nigerians

They don't mean well for us

Bag of rice will be 80k if we reinforce APC in February

Enough of this suffering my fellow Nigerians

Let's vote them out

To be honest, this man isn't making any sense. You made us believe that the PMS subsidy regime is still on and there's a budgetary provision for it.

Sylva should have explained to us why he thinks it's okay for us to buy PMS at #300 per litre as against the pump price of #170 per litre or so. When a product is regulated, the price is supposed to be fixed.

Nigerians don enter one chance

Cc Kobonaire234

Stupid man

You Sey Wetin?

At 300 naira it is even still cheaper than all our African brethren except Algeria and Angola.

Also, seems apc has admitted in essence that 40 naira petrol was a lie.

Do I blame you. Feeding big on the commonwealth of hardworking Nigerians, and here y'all saying it's not bad. How many Nigerians can boast of above ₦2,000 daily.

You can't just sit in Abuja and decide, go to the inner cities and see for yourself the ugly hardship this your administration has dragged the citizens into. It's really obscene.

And, no let's stop the comparison with other countries. How many of these countries we are comparing ourselves with have the kind of wealth and resources Nigeria has? How many?

SmartPolician:
We don enter one chance

Maybe, but on the other hand it is unrealistic tp expect fuel to be less than 250 naira per liter or even the 15 kobo it was in 1981.

I know you guys want it at 65 naira, but if peter wins and tries that, the loans he would take to sustain it would make Buhari loans look like chicken feed

DatblackBoi:
Do I blame you. Feeding big on the commonwealth of hardworking Nigerians, and here y'all saying it's not bad. How many Nigerians can boast of above ₦2,000 daily.

You can't just sit in Abuja and decide, go to the inner cities and see for yourself the ugly hardship this your administration has dragged the citizens into. It's really obscene

On the other hand pretending that fuel is cheap has added to our debt due to us taking loans to cover the deficit left by rising subsidy costs.

Pay market price for fuel at the pump or pay it at the World Bank is what it boils down to

If only the people in this current administration had allowed the then government remove fuel subsidy, this menace would have long been behind us. It's really crazy how politicians gamble with the lives and wellbeing of it's citizens all for their own selfish gains.

I truly understand your point though

Kobonaire234:


On the other hand pretending that fuel is cheap has added to our debt due to us taking loans to cover the deficit left by rising subsidy costs.

Pay market price for fuel at the pump or pay it at the World Bank is what it boils down to

SmartPolician:
To be honest, this man isn't making any sense. You made us believe that the PMS subsidy regime is still on and there's a budgetary provision for it.

Sylva should have explained to us why he thinks it's okay for us to buy PMS at #300 per litre. When a product is regulated, the price is supposed to be fixed.

Nigerians don enter one chance

Cc Kobonaire234

Fixing prices is a bad economic policy because when the cost of production and transport rises above the fixed price, your subsidy costs goes up. And if you cannot pay, scarcity results


There is a reason why we don't subsidise food items like we did 40 years ago.


Also things cost money. You fix a businesses price, you eventually force them to run at a loss. And problems start

You won't want goverment regulating your prices if you were running a business.

DatblackBoi:
If only the people in this current administration had allowed the then government remove fuel subsidy, this menace would have long been behind us. It's really crazy how politicians gamble with the lives and wellbeing of it's citizens all for their own selfish gains.

I truly understand your point though

Yeah very true.

Although the main reason why subsidy is around is because Nigerians want it. Politicans just follow follow.

But back in 2012 some opposition politicians should have explained to their followers why subsidy removal was in their best interest instead of playing Machiavellian politics. Well, it is biting them in the gluteal region now.

Kobonaire234:


Fixing prices is a bad economic policy because when the cost of production and transport rises above the fixed price, your subsidy costs goes up. And if you cannot pay, scarcity results

There is a reason why we don't subsidise food items like we did 40 years ago.

Also things cost money. You fix a businesses price, you eventually force them to run at a loss. And problems start

You won't want goverment regulating your prices if you were running a business.

You aren't getting the point. The price has been fixed and there's a budget for it. Why are we buying it at a high price?

Are people in government looting the money and not paying the PMS subsidy as promised?

That's my point. The man should have addressed that. I am not interested in whether the move is good or bad.

I get angry when I see APC campaigning

SmartPolician:


You aren't getting the point. The price has been already fixed and there's a budget for it.
Why are we buying it at a high price?

Are people in government looting the money and not paying the PMS subsidy as promised?

That's my point. The man should have addressed that. I am not interested in whether the move is good or bad.

Berry simple...and it boils down to what I said earlier...

When the cost of production rises , the cost of your subsidy rises....if you cannot pay the rising costs of subsidy...scarcity results, or price increases above the official price results.

Let that sink in

When the budget was made in 2021 for 2022...no one knew that Ukraine would be invaded, that we would have really hellish weather in August and September, and that all that would 1) increase oil prices 2) increase the cost of refined products 3) increase the cost of transporting them....which had a knock on effect on subsidy costs.

As a result, by September 2022, we had spent more than we did for the whole of 2021 on subsidy. To make matters worse, diesel prices have been rising for the whole year (Diesel has not been subsidised since 2013,), raising the subsidy costs esp transport subsidy costs (government pays part of subsidy to transporters...that's why in theory fuel costs the same everywhere, unlike in India and the US where costs vary from place to place)....and the subsidy costs rose beyond what NNPC and government could cover.


Thus prices rose in many parts....



To give you an idea of how bad it is...in June 2021 it cost N261 to bring in one liter of fuel. By November 2022 it was costing N510 per liter.


And Government does not have the money because it is spending more on debts, massive oil stealing has reduced our oil income, and taxation is not providing enough cash, plus they did not diversify. At the end, here we are.


Modified...

To put things into perspective...in 2021, we spent 2.1 trillion on subsides. Between January and August 2022, we spent 2.6 trillion on subsides..

See the problem? And the increased amount we spent on subsides was due to the increased price of crude oil...which meant that the price of fuel on the market went up, and thereby the cost of subsidy.

APC government dey wotorious Nigerians, but let us take back our country through Peter Obi/ Ahmed Yusuf.
Nigeria soul is bleeding and it's only sane patriotic Nigerians can save this country from total crash.

Wetin urchins get to say?

Whatever.

Thank God APC members and urchins are buying at N60 per litre

I heard Tinubu supporters are buying at 35naira per litre, all they need to do is shout gazelle gagaraga when they arrive at the filling station.

Tinubu supporters are really enjoying this country for supporting Buhari twice and now supporting Tinubu

Thunder and lightening awaits u

#400/l would have been better!

Sai APC till 2078

Ndi Ara!!

at N300 not bad..haba mdam fear GOD na




check out my signature

Remove petrol subsidy, we no go die.

LPG- no subsidy
Kerosene - no subsidy
Diesel -no subsidy
Food -no subsidy
Electricity -expensive( 90% off)

If Nigerians had sense, they would bundle together and throw stones and tomatoes at Tinubu. Imagine APC having the audacity to run again. Lol. Like, you've done enough. Now we just want it to end for God's sake

For a product that we own.
You all fat pigs kept subsidy to enlarge your pockets while local refineries turned to ruins.

Petrol in Nigeria shouldn't be more than 100 naira per liter cause it's our collective wealth.

Lol
N216 was not okay but N300 is okay
Buharinomics, top to bottom

Here we have youths supporting this evil… kaiii

We understand that 300/liter is still the cheapest price all over the world but Nigerians don't have the money to buy the fuel in the first place. So, you are saying nonsense

Ok