Home / E GIST / Petrol: NNPC can no long bear N120bn monthly subsidy – MD Kyari warns Nigerians

Petrol: NNPC can no long bear N120bn monthly subsidy – MD Kyari warns Nigerians

The Group Managing Director of Nigeria Nationwide Petroleum Company NNPC, Mele Kyari, says the company can not bear the over N120 billion month-to-month subsidy for Premium Motor Spirit (PMS).

Kyari acknowledged this through the weekly media briefing organised by the Presidential Communication Crew on the State Home, Abuja, on Thursday.

Based on him, the precise value of importation and dealing with expenses quantities to N234 per litre, whereas the federal government is promoting at N162 per litre.

He added that the NNPC absorbs the fee differential, which is recorded in its monetary books.

Kyari, nonetheless, mentioned that since NNPC might not bear the fee, in the end, Nigerians must pay the precise value for the commodity.

Based on the GMD, the NNPC pays between N100 billion and N120 billion a month to maintain the pump value on the present ranges.

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He mentioned that market forces should be allowed to find out the pump value of petrol within the nation.

“Our present consumption (evacuation) from our depots is about 60million litres per day. We’re promoting at N162 a litre. The present market value is 234, the precise market value at present.

“The distinction between the 2, multiplied by 60million, instances thirty, gives you monthly.

“It is a easy calculation you do. If you need precise figures from our guide, I would not have it from this second, nevertheless it’s between N100billion and N120billion monthly.

“We’re placing the distinction within the books of NNPC, and we can not proceed to bear,’’ he mentioned.

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The Minister of State for Petroleum Assets, Timipre Sylva, who additionally spoke on the occasion, expressed the hope that the Petroleum Business Invoice (PIB) can be handed into legislation in April.

Based on him, frantic efforts are being made by the legislators to finish work on the invoice and cross it, in step with the aspirations of vital stakeholders within the petroleum sector.

“The Nationwide Meeting has expressed the intent to cross the PIB into legislation by April 2021. Each effort is being made to assist the Nationwide Meeting to satisfy this goal,” he mentioned.

Petrol: NNPC can no lengthy bear N120bn month-to-month subsidy – MD Kyari warns Nigerians

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