Mele Kyari, Group Managing Director of Nigeria Petroleum Corporation, NNPC, says the corporation can not bear the over N120 billion monthly subsidy for Premium Motor Spirit, PMS.
The NNPC MD made this remark during the weekly briefing put together by the Presidential Communication Team at the State House in Abuja on Thursday.
Kyari said the actual cost of importation and handling charges is peg at N234 per litre, while the government sells at N162 per litre.
He further revealed that the NNPC takes on itself the cost differential, which is well-documented in his 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.
According to the GMD, the NNPC pays between N100 billion and N120 billion a month to keep the pump price at the current levels.
Kyari said the market forces must be permitted to determine the fuel 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.