No fuel subsidy payments have been made to marketers since 2016 — NNPCL

…Kyari says cheaper alternatives to petrol are being planned

By Akinyemi Precious

The Nigerian National Petroleum Company Limited has said that it will reconcile fuel subsidy deductions with the Federal Government.

This was made known after he stated that no fuel subsidy payments were made to marketers since January 2016.

The company stated this during the week, when it posted a before and after fuel subsidy factsheet via their official account on Twitter.

Previously, the Group Chief Executive Officer of the NNPC Limited said the Federal Government owed it over $6 billion (N2.8 trillion) which NNPCL has paid to keep fuel cheap.

However, in the Nigeria Development Update report from the World Bank, it was stated that the recent decision to remove the fuel subsidy was crucial in restoring macroeconomic stability, creating fiscal space, and improving growth prospects and will improve Nigeria’s fiscal position.

The NNPCL also made it known that No marketer was paid petrol subsidy by NNPC Limited as marketers usually bought below-cost price but now, Marketers will now pay the cost price as determined by the market. Also, the nation was continuously in debt for subsidy payment but there will now be the beginning of a new era of renewed hope and opportunities

Crude oil swap deals will phase out compared to when NNPCL paid suppliers either cash or delivered the equal value of crude oil volumes as settlement.  Suppliers imported products on commercial terms for NNPC Limited on the back of their credit abilities but henceforth, NNPC Limited will no longer be the sole importer of petroleum products.