Mr. Kyari who spoke at PENGASSAN Energy and Labour Summit, PEALS, in Abuja, yesterday, explained that the coming on-stream of refineries would guarantee energy security for the country and ensure growth for the oil and gas industry.The NNPC boss pointed out that while it was difficult to actually ascertain the amount of petrol consumed daily in the country; evacuations from depots have dropped by 30 percent since subsidy removal was announced.
“Evacuation means every litre of product that leaves the depot is known because the trucks and the volume they carry are known. But once they get out of the depots, the next story is everybody’s guess”. “From 2022 when until 29th of May 2023, not a single Naira was paid to the NNPC Limited as cost of subsidies. That means we were carrying the entire cost on the balance sheet of the NNPC. We hold back fiscal revenues, taxes, royalties, including profits, and yet because we are seeing values exceeding N400 billion in a month for subsidy, there is no way these fiscal obligations will cover the cost of subsidy.
He also noted that subsidy was also promoting corruption and fraud in the industry, this is because there was “simply no way you can manage an environment that included shortages and cross border smuggling due to the huge difference between market value of the product and the price consumers were paying”.
Source: Car News Wire (carnewswire.net)
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