The Nigerian National Petroleum Corporation (NNPC) NNPC says it can no longer afford to bear the N120 billion monthly subsidy cost it expends on Premium Motor Spirit (PMS) popularly known as petrol, saying Nigerians would have to pay the actual cost sooner or later.
The Group General Manager (GMD) of NNPC, Mele Kyari, said this on Thursday while reacting to the status of petrol’s pump price in the country
Kyari spoke at the weekly ministerial briefing at the Presidential Villa, Abuja.
He explained the NNPC absorbs the cost differential, which is recorded in its financial books, adding while the actual cost of importation and handling charges amounts to N234 per litre, the government is selling at N162 per litre.
Kyari while explaining why the heavy subsidy must be stopped, said the burden had become too heavy to bear.
He stated after conclusion of talks with Organised Labour on how to caution effects of the deregulation of the oil sector, the market forces would be allowed to determine prices of petroleum products.
“Our current consumption is— evacuation from our depots is about 60 million liters per day. We are selling at 162 to the liter. Current market price is 234, actual market price today.
“The difference between the two, multiply by 60million times thirty, will give you per month.
“This is a simple arrangement you do. If you want exact figures from our book, I do not have it at this moment but it’s between N100billion and N120billion per month.
“We are putting the difference in the books of NNPC and we cannot continue to bear,” he stated.