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Prepare for another fuel price hike, Timipre Sylva tells Nigerians

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The Minister of State for Petroleum Resources, Timipre Sylva has called on Nigerians to prepare for another pump price hike of petroleum as crude oil price goes up above $60 per barrel.

Sylva explained that with no provision for subsidy in the 2021 budget, the Nigerian National Petroleum Corporation (NNPC) couldn’t continue to bear the cost of under-recovery.

The former Bayelsa Governor disclosed this at the official launch of Nigerian Upstream Cost Optimisation Program on Tuesday.

According to Sylva: “Since we’re optimizing everything, NNPC needs to also think about the optimization of product cost because as we all know, oil prices are where they’re today, $60.

“As desirable as this, this has serious consequences as well on product prices. So we want to take the pleasure, and we should as a country, be ready to take the pain.

“Today the NNPC is taking a big hit from this. We all know that there is no provision in the budget for subsidy.

“So, somewhere down the line, I believe that the NNPC can’t continue to take this blow. There’s no way because there’s no provision for it.

“As a country, let us take the benefits of the higher crude oil prices, and I hope we’ll also be ready to take a little pain on the side of higher product prices.”

Currently, the pump price of petrol ranges from N160 –N165, the price set when crude traded just above $43 per barrel, a few months ago.

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