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“It is why we are not benefiting now because, on small-scale power generation. The economic
the one hand, the price of crude is going up, but impact of diesel subsidies would be more obvi-
we have to spend that money to import petro- ous to Nigeria’s poor and working-class citizens,
leum products which we now sell at a reduced he argued.
price,” he said, according to Vanguard. “It is rich “Many firms are running their generators
countries that can afford subsidies. We are poor, with diesel. Commercial goods are moved by
and that is the reality. We don’t have money that roads using diesel. Diesel is very expensive,
can allow us this way of life – the luxury that but we are not subsidising it,” he commented,
subsidy is.” according to Vanguard. “Also, kerosene is also
Adenikinju went on to say he believed that expensive [for] low-income households, and
the Nigerian government would obtain more yet we are not subsidising it but petrol, which is
benefits from subsidising domestic prices for consumed by the middle class. [That] is what we
diesel, which is a crucial fuel for transport and are subsidising,” he added. ™

Nigerian oil minister says OPEC+ group is

running low on spare production capacity

NIGERIA/GLOBAL NIGERIA’S Minister of State for Petroleum Sylva also noted the constraints Russia
Resources Timipre Sylva said on June 24 that was facing because of the Western sanctions
members of the OPEC+ group were running imposed in response to the invasion of Ukraine,
out of capacity to expand crude oil production. saying: “[Of] course, Russia is out of the market
Speaking in advance of a scheduled meeting now, more or less.”
between OPEC and allied producer states on Sylva went on to say that he did not expect
July 2, Sylva said that even the biggest members the OPEC+ group to deviate from its previously
of the group had only limited capacity for push- planned schedule of production increases at the
ing output levels up. upcoming meeting. “At this moment, I think
“Some people believe the prices to be a little the prices are firming up and I don’t think there
bit on the high side and expect us to pump a little will be any surprises in OPEC in August,” he
bit more, but at this moment there is really little remarked.
additional capacity,” he told reporters.
The limits on spare capacity are clear, even Nigeria’s plans
for Saudi Arabia and Russia, which are by far He also expressed some frustration about Nige-
the largest oil producers in the OPEC+ group, ria’s inability to meet its own OPEC production
he stated. quotas. ™

Sylva (L), shown attending OPEC meeting in December 2019 (Photo: Nigeria Ministry of Petroleum Resources)

P10 www. NEWSBASE .com Week 26 29•June•2022