Mele Kyari, the Group Managing Director of Nigeria National Petroleum Corporation (NNPC) expressed clearly to Nigerians that the corporation can no longer bear the over #120 billion monthly subsidy for Premium Motor Spirit (PMS).
This was made known during the weekly media briefing arranged by the Presidential Communication Team at the State House, Abuja; on Thursday.
In the course of the briefing while still speaking, he revealed that the actual cost of importation and handling charges had amounted to #234 per liter, on the other hand, the federal government had put up the sell at #162 per litre.
He stated clearly that the NNPC retains the cost differences as recorded in the financial books.
The Nigerian geologist and crude oil marketer, stressed that since NNPC could no longer bear the cost burden, sooner or later; Nigerians would have to bear the cost of the actual price for the commodity.
“The NNPC pays between #100 billion and #120 billion a month to sustain the pump price at the current levels” Managing Director Kyari said while briefing the media in Abuja.
He added that the economic market forces must be given the chance to ascertain the actual pump price of petrol in the country.
According to him, he asserted that the current consumption from depot’s is about 60million litres per day, selling at #162 a litre with the current market tag at 234 which happens to be the actual market price currently.
In the calculation figure, the difference between the two multipled by 60milloon, times thirty gives the actual month per month.
He told the press during the briefing that the corporation is putting the difference in the books record of NNPC, and that they can’t continue to bear it.
The Minister of the State for Petroleum Resources, Timipre Sylva who also spoke at the event at the Presidential State House in Abuja was optimistic that rhe Petroleum Industry Bill (PIB) would be passed into law comes April next month.
He also mentioned that efforts are being made by the legislators to complete work on the bill and pass it in consonance with the aspirations of critical stakeholders in the petroleum sector.