Mele Kyari, the Group Managing Director of Nigerian National Petroleum Corporation (NNPC), says Nigerians ought to be paying at least N256 per liter for petroleum. Mr Kyari uncovered this at a stakeholders meeting organized by the NNPC to stop fuel smuggling.
Remarking on the current PMS and appropriation installment, Mr Kyari noticed that the petroleum siphon cost ought to be N256 per liter given the current exchange rate.
The NNPC boss stated that If we are to sell at the market today at the current exchange rate, we will be selling the product at about N256 to a liter. What we sell today is N162, so the difference is at a cost to the nation.
According to him, the country cannot sustain subsidy payment with the high volume of daily consumption, pointing out that the country coughs up N150 billion every month on subsidy.
The NNPC boss further clarified, As long as we don’t direct volume until we can leave this current level, which I know such a lot of work is going on, then, at that point we need to deal with the volume that we are presented to between this cost of N162 and N256. The distinction returns to as much as N140 billion to N150 billion expense for the nation every month.
As long as the volume goes up, that cash proceeds to continue to increase, and we have two arrangements of stress to confront: the pressure of supply and stress of unfamiliar trade for the NNPC.
SOURCE: news-af.feednew.com