Nigeria’s Federal Government has hinted at a likely hike in the pump price of petrol.
Minister of State for Petroleum Resources Timipre Sylva urged Nigerians to be ready to bear the pains of increased petrol price as crude oil price climbs above $60 per barrel.
Sylva was speaking at the launch of the Nigerian Upstream Cost Optimisation Programme (NUCOP) in Abuja.
Sylva said the Nigerian National Petroleum Corporation (NNPC) cannot continue to bear the cost of under-recovery because there is no provision of subsidy in the 2021 budget.
The petroleum minister noted that while government revenue had improved by the rise in crude oil price globally, it cannot be fretted away in subsidy payments.
The price of a litre of petrol is between N160 and N165, the price set when crude traded just above $43 per barrel four months ago.
Also speaking at the event, the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) stated this amid concerns that the government may increase the price of premium motor spirit (otherwise known as petrol) following increase in the global price of crude oil to $60 per barrel.
PENGASSAN President Festus Osifo said there must be cost reduction in the cost of governance in the oil and gas sector.