This is coming as the Nigerian National Petroleum Corporation (NNPC) yesterday blamed insecurity in the Niger Delta and other factors peculiar to Nigeria's operating environment for the high cost of oil production in Nigeria.
The statement, which was signed by the agency's Executive Secretary, Mr. Abdulkadir Saidu and backdated to March this year, noted that the agency would only continue to monitor trends in the crude oil market and advise the Nigerian National Petroleum Corporation (NNPC) and oil marketers accordingly.
No. 8 of 2003, and all other powers enabling it in that behalf, the Petroleum Product Pricing Regulatory Agency, with the approval of the President hereby states the following:
"Market-based pricing regime for premium motor spirit (PMS) using the pricing template of the Petroleum Products Pricing Regulatory Agency:
"The price cap per litre in respect of Premium Motor Spirit (PMS) is removed from the commencement of these regulations.
He also described the $10 production cost, also known as operating cost, as an aspirational and aggressive target of the NNPC that the national oil company is determined to achieve.
NNPC Group Managing Director, Mr. Mele Kyari, had last month expressed the oil corporation's determination to cut production cost to $10 per barrel in view of the crash in oil prices to as low as $13 per barrel in the wake of COVID-19 that triggered a glut due to a sharp drop in demand.
