The Group Managing Director of Nigeria National Petroleum Corporation NNPC, Mele Kyari, says the corporation can no longer bear the over N120 billion monthly subsidy for Premium Motor Spirit (PMS).

Kyari stated this during the weekly media briefing organised by the Presidential Communication Team at the State House, Abuja, on Thursday.

According to him, 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.

According to the GMD, the NNPC pays between N100 billion and N120 billion a month to keep the pump price at the current levels.

He said that market forces must be allowed to determine the 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.

The Minister of State for Petroleum Resources, Timipre Sylva, who also spoke at the event, expressed the hope that the Petroleum Industry Bill (PIB) would be passed into law in April.

According to him, 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.

Rugaria:
The president of this country just handed out over 60 oil wells to "UNKNOWN" people and all of you are quiet Is there any bigger corruption case than this? Is Nigeria Buharis property? Why secret? What are they hiding? What's going on!?!?
Within the last few years, Buhari who has doubled as the minister of petroleum, has renewed over 60 oil well licences, and all were kept secret too!!!
People, this is not buharis or fulanis oil wells. This man is auctioning off sensitive economic assets of the country to cronies, while shouting "anti corruption" all over the place! Buhari is the corruption he needs to fight..

LadySarah:
Can someone explain to me why durinvg Jonah's tenure,removal of subsidy would amount to #145 ftom #97 and yet we are at #212 and still paying subsidy?

Where are the labor Unions that threatened to shut down the country,the Opposition lions and the BMC.


Remove it and let us rest, fools!At this point i feel sorry for the businesses dependent on fuel to power their equipments.