Mele Kyari, Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), has disclosed that the Federal Government injects between N140 billion to N150 billion monthly to keep petrol price at N162 per litre, as against its actual N256 per litre.
Kyari said this during a stakeholders meeting organised by the NNPC to discuss how best to stop smuggling of petroleum products.
“If we are to sell at the market today at 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”, the News Agency of Nigeria quoted him as saying while speaking on the fuel price.
“The difference comes back to as much as N140bn to N150bn cost to the country monthly”.
The NNPC GMD, however, said with the high volume of daily consumption, the country cannot sustain subsidy payment.
He noted that smuggling across the borders increased the daily consumption of Premium Motor Spirit (PMS) to 103 million litres per day in May.
“But the introduction of Operation White and involvement of the Economic and Financial Crimes Commission (EFCC) had helped the situation, “Kyari stated.
“From the truck out report from the PPPRA database, we have seen collapse of load-out average move from 70m litres to 60m litres just in one month; that means we can do with less than 70m, the balance, I don’t know where it goes to but we know for sure that it is not consumed in this country.
“In very recent data, we see what we really want in the beginning of May and June, there was a day, we loaded out about 103m litres of PMS within one day across the depots.”