Mele Kyari, the Group Managing Director of Nigeria National Petroleum Corporation NNPC, says the corporation can no longer bear the over N120 billion monthly subsidy for Premium Motor Spirit (PMS).
The GMD stated this during the weekly media briefing organised by the Presidential Communication Team at the State House, Abuja, on Thursday.
Kyari made it clear that the actual cost of importation and handling charges amounts to N234 per litre, while the government is selling at N162 per litre.
He added that the NNPC absorbs the cost differential, which is recorded in its financial books.
Kyari, however, said that since NNPC could no longer bear the cost, sooner or later, Nigerians would have to pay the actual cost for the commodity.
He said, the NNPC pays between N100 billion and N120 billion a month to keep the pump price at the current levels and insisted that market forces must be allowed to determine the pump price of petrol in the country.
According to him, “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”.
Timipre Sylva, the Minister of State for Petroleum Resources, who also spoke at the event, expressed the hope that the Petroleum Industry Bill (PIB) would be passed into law in April.
He disclosed that frantic efforts are being made by the legislators to complete work on the bill and pass it, in line with the aspirations of critical stakeholders in the petroleum sector.
“The National Assembly has expressed the intent to pass the PIB into law by April 2021. Every effort is being made to support the National Assembly to meet this target,” he said.