We can’t afford N120bn monthly subsidy anymore, Nigerians must bear the cost- NNPC

The Group Managing Director of Nigeria National Petroleum Corporation NNPC, Mele Kyari, has declared that the agency can no longer bear the over N120 billion monthly subsidy for Premium Motor Spirit (PMS).

He made this declaration at the the weekly media briefing organised by the Presidential Communication Team at the State House, Abuja, on Thursday.

Kyari revealed that the actual cost of importation and handling charges I’d N234 per litre, while the government is selling at N162 per litre.

He noted that the NNPC is bearing the brunt of cost differential, which is recorded in its financial books.

He however noted that the NNPC can no longer be bearing the brunt of the amount, saying that Nigerians would be responsible for the cost.

Kyari added that the agency pays between N100 billion and N120 billion a month to keep the pump price at the current levels.

Acccording to him, market forces must be allowed to determine the pump price of petrol in the country.

“Our current consumption (evacuation) from our depots is about 60million litres per day. We are selling at N162 a litre. The current market price is 234, the actual market price today.

“The difference between the two, multiplied by 60million, times thirty, will give you per month.

“This is a simple calculation you do. If you want exact figures from our book, I do not have it from 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 said.

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