NNPC National Petroleum Corporation NNPC Group CEO Mele Kyari says the corporation can no longer afford over N120 billion in monthly subsidies for Premium Motor Spirit (PMS).
Kyari made the announcement during a weekly media briefing hosted by the presidential communications team at Abuja State House on Thursday.
According to him, the actual import costs and handling fees are N234 per liter, while the government sells at a price of N162 per liter.
He added that the NNPC absorbs the difference in expenses recorded in its financial books.
Kyari, however, said that since the NNPC can no longer bear the costs, sooner or later, Nigerians will have to pay the actual cost of the goods.
According to GMD, the NNPC pays between N100 billion and N120 billion a month to keep the price of the pump at its current level.
He said market forces must be allowed to determine the price of gasoline in the country.
“Our current consumption (evacuation) from our warehouses is around 60 million liters a day. We sell at N162 liters. The current market price is 234, the actual market price today.
“The difference between the two, multiplied by 60 million times thirty, gives you a month.
“This is a simple calculation. If you want accurate data from our book, I don’t have it as of this moment, but it ranges between N100 and N120 billion a month.
“We put the difference in the NNPC books and we can’t tolerate it any further,” he said.
State Minister for Petroleum Resources Timipre Sylva, who also spoke at the event, expressed hope that the Oil Industry Act (PIB) would be adopted in April.
According to him, the legislators are making crazy efforts to complete the work on the draft law and adopt it, in line with the aspirations of critical stakeholders in the oil sector.
“The National Assembly has expressed its intention to adopt the PIB in the law by April 2021. Every effort is being made to support the National Assembly in fulfilling this goal,” he said.