NNPC: Without monthly subsidy, petrol could reach N256/litre

Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mele Kyari, has said the federal government is injecting between N140 billion to N150bn monthly to keep petrol price at N162 per litre, from its actual N256.

He stated this during a stakeholders meeting organised by NNPC to discuss how best to stop smuggling.

While commenting on the fuel price, he said, “If we are to sell at the market today at current exchange rate, we will be selling the product at about N256 to a litre. What we sell today is N162, so the difference is at a cost to the nation.

“The difference comes back to as much as N140bn to N150bn cost to the country monthly.”

He however said with the high volume of daily consumption, the country cannot sustain subsidy payment.

He noted that smuggling across the borders increased the daily consumption of Premium Motor Spirit (PMS) to 103 million litres per day in May.

But the introduction of Operation White and involvement of the Economic and Financial Crimes Commission (EFCC) had helped the situation, Kyari stated.

“From the truck out report from the PPPRA database, we have seen collapse of load-out average move from 70m litres to 60m litres just in one month; that means we can do with less than 70m, the balance, I don’t know where it goes to but we know for sure that it is not consumed in this country.

“In very recent data, we see what we really want in the beginning of May and June, there was a day, we loaded out about 103m litres of PMS within one day across the depots.”

The Minister of State for Petroleum Resource, Chief Timipre Sylva, said smuggling was not a business and would never be a business.

“When I first came in as minister, I was informed that the daily consumption in the country was around  60 to 62m litres a day, which to me sounded a little bit outrageous considering the number of cars we have on the road .

“But somehow, the figures I understand today, have come down to around 52m litres,” he said. (NAN)

Popular

spot_img

More from author

IK Osakioduwa returns as Nigerian Idol season 7 host

After a thrilling ride filled with suspense and humour in the last season, IK Osakioduwa is set to return as a second-time host for...

Governor Ortom signs Benue’s amended grazing bill into law

Governor Samuel Ortom of Benue State on Thursday signed into law the Open Grazing Prohibition and Ranches Establishment Amendment Bill 2017. The bill was passed...

Abdusalami: Nigeria seems stuck politically

Former Military Head of State, Abdusalami Abubakar, has said it appears as if Nigeria has been stuck politically since 1960. Abdusalami, who ruled Nigeria between...

Jail attacks: Immigration Service, Civil Defence to help secure FCT Custodial Centres

Operatives of the Nigeria Immigration Service (NIS) and Nigeria Security and Civil Defence Corps (NSCDC) will now team up to provide security in custodial...