The Nigerian National Petroleum Corporation (NNPC) has declared it would soon stop bearing the over N120 billion monthly subsidy cost it expends on Premium Motor Spirit (PMS) popularly known as petrol.
Group General Manager (GMD) of the NNPC, Mele Kyari, stated this while reacting to the status of petrol’s pump price in the country.
He spoke during the weekly ministerial briefing coordinated by the presidential communication team.
Kyari 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.
Explaining why the heavy subsidy must be stopped, Kyari said the burden had become too heavy to bear.
Report indicts NNPC, CBN, others of under-remittance to Federal Government. 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.
Comment here