Timipre Sylva, minister of state for petroleum resources,
says he would not mind buying petrol at N300 a litre.
Sylva said this on Monday at the government’s accountability
series titled ‘PMB administration scorecard 2015-2023’.
The event is designed to showcase the achievements of
Buhari’s administration since he came into power in 2015.
Sylva, during his presentation, said other countries sell
their products at higher prices than in Nigeria, hence, N300 per litre is not
too high.
“Frankly, if you ask
me I will say I won’t feel bad (buying fuel for N300) knowing the actual
situation. And if you compare Nigeria to other countries, then you will also
understand. Then you convert the N300 to other currencies, you will probably
understand,” he said.
“A lot of you travel to the United Kingdom and the United States.
How much do you buy petroleum products? Even in Saudi Arabia and in the Arab
countries that produce crude oil, convert to naira, you will find out that we
are not doing too badly.”
‘SUBSIDY REGIME NOT
SUSTAINABLE’
Likewise, Sylva said if the cost of petroleum products were
market-driven, investors would not continue to shy away from investing in the
downstream oil sector.
He added that investors will not come to the country under
the subsidy regime, but said they would be willing to put their money into the
sector when the market is free.
“Under a subsidised regime, who is going to invest? If you
build a refinery, how is your refinery going to make profit under a subsidised
regime? But if you have a market-driven situation, you’ll see that a lot of
investors will come,” he said.
“And the more refineries we have, this problem of access to
petroleum products will be a thing of the past.”
Sylva further reiterated that petrol subsidy was not
sustainable and also not profitable.
“The management of the supply situation under this subsidy
regime is not easy. We must all agree [that] so much money is being burnt on
our cars. But somehow we have to seek funds in order to keep the country wet,”
he said.
“Sometimes, if you really think deeply, you begin to wonder
what magic they are doing to even be able to keep this country wet, considering
that you buy something, let’s say for N10 and you are to sell it at a loss.
“And then you are expected to go back and buy the same thing
and come back and sell at a loss, so that at every point in time you are
looking for more money to continue to buy it because you are mandated to sell
it at a loss. If you are a businessman, look at it from that perspective, that
you are in a business where you are mandated to sell at a loss to the
population.”
‘FG SHOULD BE COMMENDED FOR IMPROVING SECURITY
IN NIGER DELTA’
Sylva further noted that the federal government should be
applauded for improving security in the Niger Delta, which has contributed to
increased oil production.
The minister said the federal government has strengthened
real-time tracking of supply and distribution, thereby, improving security in
the operating environment.
On the achievement of the ministry, Sylva said it was able
to pass landmark legislation such as the deep sea and inland basin act and the
petroleum industry act (PIA), adding that it was also promoting indigenous
participation by facilitating crude access and ease of license approval.
The projected 5 percent reduction in crude oil production
costs was also achieved and exceeded during the period, he said.
In addition, the minister said kerosene was no longer within
the direct purview of the federal government, since the price has now been
deregulated, admitting however, that it remains the fuel of the
less-privileged.
Sylva also listed the gas flare commercialisation programme
— which he said was at the final stage of awarding the flare points to
potential winners — as one of the achievements of the present administration.
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