NNPC laments cost of petrol subsidy, says it can’t continue to bear burden

By Modupe Shodeinde

The Group Managing Director of Nigeria National Petroleum Corporation (NNPC), Mele Kyari, says petrol is currently being subsidised at the cost between N100 and N120 billion on monthly basis.

He added that corporation could no longer bear the burden of the product currently being sold at N162 per litre.

Kyari disclosed this Thursday while speaking with journalists at the Presidential Villa, Abuja.

He revealed that while the actual cost of importation and handling charges amounts to N234 per liter, the government is selling at N162 per liter.

He stated that “The price could have been anywhere between N211 and N234 to the litre. The meaning of this is that consumers are not paying for the full value of the PMS that we are consuming and therefore someone is paying that cost,” he said.

“As we speak today, the difference is being carried in the books of NNPC and I can confirm to you that NNPC may no longer be in a position to carry that burden.”