In a significant development, Mele Kyari, the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), appeared before Senator Solomon Olamilekan Adeola, Chairman of the Senate Appropriations Committee. The focus of the session centered on the role of refineries in addressing the escalating petrol prices, with Kyari making a robust statement that refineries were not established with the primary objective of reducing petrol prices.
During the hearing, Senator Adeola probed Kyari on the rationale behind the seemingly persistent disparity between crude oil costs and the pump price of petrol. Kyari responded by elaborating on the multifaceted nature of the issue, highlighting operational challenges, maintenance issues, and global market dynamics.
Kyari further emphasized that the refineries were strategically positioned to enhance domestic fuel production and reduce reliance on imports. He provided a detailed overview of ongoing rehabilitation efforts and modernization plans aimed at optimizing the operational efficiency of these facilities.
Senator Adeola, representing the Senate Appropriations Committee, pressed Kyari for insights into the corporation’s pricing mechanism. Kyari acknowledged the need for transparency and outlined the complexities involved in determining petrol prices, including production costs, transportation, and regulatory considerations.
In response to concerns about the impact on consumers, Kyari outlined the NNPC’s commitment to exploring collaborative initiatives with the private sector, investing in alternative energy sources, and pursuing regulatory reforms. He expressed optimism that these measures would contribute to a more competitive and sustainable energy landscape.
The session concluded with Senator Adeola reaffirming the committee’s dedication to ensuring effective oversight and collaboration with the NNPC. The ongoing dialogue between the government and the petroleum sector aims to strike a balance between economic viability and consumer welfare in the face of evolving energy challenges.