The Group Managing Director of the Nigerian National Petroleum Corporation, NNPC, Mele Kyari, says the Federal Government can no longer afford subsidization of the cost of petrol in the country.
He said on Thursday that the Federal Government spends about N120 billion monthly on fuel subsidy monthly.
According to him, the actual cost of importation and handling charges amounts to N234 per litre.
He added that the government has been selling the product at N162 per litre.
According to him, the trend can’t continue, saying that Nigerians would have to pay the actual cost sooner or later.
He argued that market forces must be allowed to determine the pump price of petrol in the country.
“Our current consumption is— evacuation from our depots is about 60 million litres per day. We are selling at 162 to the litre. The current market price is 234, the actual market price today.
“The difference between the two, multiply by 60million times thirty, will give you per month.
“This is a simple arrangement you do. If you want exact figures from our book, I do not have them at 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 stated.
