Speaking with State House Correspondents on Monday in Abuja, Kyari said that contrary to insinuations, the federal government is no longer paying subsidy to any person or group for bringing petroleum products into the country.
Kyari’s explanation followed speculations that pump prices of Petroleum Motor Spirit (PMS), popularly known as petrol could skyrocket, following the increase in the landing costs of the product.
“No subsidy whatsoever. We are recovering our full cost from the products that we import.
We sell to the market; we understand why the marketers are unable to import,” Kyari said.
“We understand why marketers are unable to import. We hope that they begin to do so very quickly and these are some of the interventions government is making. There is no subsidy,’’ he said.
Kyari further explained that pockets of long queues witnessed in some parts of the country in recent times, were due to bad roads that had made transporters to divert the product to other routes.
“We have seen in very few states pockets of very long queues. This is not unconnected with the road situation and that’s why we’re seeing some blockades on our roads.
“Moving the products from the southern depots into the northern part of the country takes them much longer time now than it used to be.
“They have to re-route their trucks around many locations for them to be able to reach their destinations and that created delays and some supply gaps. But, that has been filled and we do not see any of such problems again.
“Secondly, because of the full deregulation that we have in this sector, marketers are now competing amongst themselves,” he said.
On the shortage of foreign exchange, Kyari said: ’There are few issues we’re engaging them (marketers) to resolve, alongside other agencies of government, particularly critical issues around access to foreign exchange.
“And as you all know, government is doing so much to ensure supply of forex into the market.
“We know that this FX markets will stabilise, the current I&E window is around 770.
“And we know that those inputs from government will crystalise and they will come to an equilibrium position in the FX market and this is the dream of this country,’’ he said.
Kyari assured oil marketers of a stable forex and a situation where the prices of the product would align with the prices of other commodities.
The declaration resulted in rise in petrol pump prices nationwide from below N200 per litre to between N500 and N617, depending on the place of purchase.