NNPC Chief Wants FG To Remove Fuel Subsidy

The Nigerian National Petroleum Corporation (NNPC) has called on the Federal Government to scrap the Petroleum Support Fund (PSF), otherwise known as Petroleum Subsidy, because government should not guarantee the price of crude oil that it does not control.

In his presentation during the 2015 Oloibiri Lecture and Energy Forum of the Society of Petroleum Engineers (SPE) in Abuja, on Thursday, the corporation’s Group Executive Director, Corporate Strategy and Planning, Dr. Timothy Okon, described subsidy as the difference between the landing cost of petroleum products and the price for which it is sold.

Speaking further on the theme, Global Oil Price Dynamics: Impact and Strategic Solution for Nigeria, Okon explained that “since government does not control the prices of crude oil, its fluctuation creates a fiscal instability in the country, adding that the oil subsidy is a first line charge removed from the revenue before it is shared among the three tiers of government.