The Nigerian National Petroleum Company Ltd., NNPCL, said on Friday that the amount paid as a subsidy on Premium Motor Spirit (PMS), often known as petrol, has surpassed N400 billion every month.
NNPCL’s Group Chief Executive Officer, Malam Mele Kyari, announced this on Friday in Abuja during the final cutover to transform NNPC’s status from a corporation.
Kyari revealed that NNPCL spent almost N202 million as a subsidy on every litre of fuel consumed in the country.
He further stated that the NNPCL poured around 65 million litres of PMS into the market on a daily basis.
Kyari stated that the oil firm will continue to satisfy its duties by delivering PMS for Nigeria, but that the N400 billion monthly subsidy has put a significant pressure on NNPCL’s financial flow.
According to him, NNPCL is the single importer of petrol into Nigeria and has been doing so for numerous years, incurring the enormous expense of fuel subsidy.
Some private oil marketers ceased bringing petrol into Nigeria owing to difficulties in obtaining the US dollars necessary for PMS imports, he claimed.
Kyari articulated: “Today, by law and the provisions of the Appropriation Act, there is subsidy on the supply of petroleum products, particularly PMS into our country. In current data terms, three days ago the landing cost was around N315/litre.
“Our customers are here, we are transferring to each of them at N113 per litre. That means there is a difference of close to N202 for every litre of PMS we import into this country. In computation, N202 multiplied by 66.5 million litres, multiplied by 30 will give you over N400 billion of subsidy every month.”
