The Nigerian National Petroleum Corporation, (NNPC), has lamented the burden placed on it by the ongoing subsidisation of the cost of petrol also known as Premium Motor Spirit (PMS) in the country, saying that sooner or later Nigerians have to pay the actual cost for the commodity.
This was disclosed yesterday by the Group General Manager (GMD) of the National Petroleum Corporation (NNPC), Mele Kyari, while reacting to a question about the status of petrol’s pump price in the country, during the weekly presidential ministerial media briefing held at the Presidential Villa, Abuja.
According to him, the product is currently being sold below the cost of importation, causing the NNPC to pay the difference.
He explained that while the actual cost of importation and handling charges amounts to N234 per litre, the government is selling at N162 per litre.
While refraining from calling the payment a subsidy regime, Kyari said the NNPC pays between N100-120 billion a month to keep the pump price at the current levels.
He, however, declared that the Corporation can no longer bear the cost as market forces must be allowed to determine the pump price of petrol in the country, adding that the NNPC absorbs the cost differential which is recorded in its financial books.
Kyari added that with full deregulation, oil marketers will begin to import PMS thereby taking the burden off NNPC and bringing the Direct Sale-Direct Purchase (DSDP) Programme to an end.