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Nigerians Should Be Paying N256/litre For Petrol – NNPC

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Mele Kyari, the Group Managing Director of Nigerian National Petroleum Corporation (NNPC), says Nigerians should be paying at least N256 per litre for petrol.

Mr Kyari disclosed this at a stakeholders meeting organised by the NNPC to stop fuel smuggling.

Commenting on the current PMS and subsidy payment, Mr Kyari noted that the petrol pump price should be N256 per litre given the current exchange rate.

“If we are to sell at the market today at the 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,’’ he said.

According to him, the country cannot sustain subsidy payment with the high volume of daily consumption, pointing out that the country coughs up N150 billion every month on subsidy.

The NNPC boss further explained, “As long as we don’t regulate volume until we are able to exit this current level, which I know so much work is going on, then we have to manage the volume that we are exposed to between this price of N162 and N256. The difference comes back to as much as N140 billion to N150 billion cost to the country monthly.

“As long as the volume goes up, that money continues to increase, and we have two sets of stress to face: the stress of supply and stress of foreign exchange for the NNPC. We may not see foreign exchange cheque taking place for importation.’’

 

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1 Comment

1 Comment

  1. Dr. AMUSA RA

    June 24, 2021 at 6:38 am

    NNPC leadership should be removed for saying that Nigeria is still subsidising petrol price when in fact President Buhari has had removed oil subsidy. It was the removal of oil subsidy that raised the price all the way from ₦11/ litre during Chief Shonekan interim government, to Chief Obasanjo and finally to the present administration. If petrol are smuggled out every day what is job functions of our custom officers and other security agents in the country. Government should challenge the custom chiefs and military heads for the various insecurities in Nigeria.

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