Petrol Will Cost N410 Without Subsidy, Says NNPC
The Group Chief Executive Officer of NNPC Limited, Mele Kyari has warned that without the current subsidy on petrol, the actual importation and retail cost would be at N410 per litre as market conditions take price to thrice of N170 pump price.
Economic Confidential had earlier reported that the cost of petrol had risen to as high as N200/litre at depots on Tuesday, stating that PMS cost, which was about N178 to N185/litre was jerked up by private depot owners due to the drop in supply by the NNPC, among other operational concerns.
The petrol scarcity and queues have continued on Wednesday with fewer vehicles plying the city roads.
He stated this yesterday at the Legislative Transparency and Accountability Summit organised by the House of Representatives in Abuja.
Also Read: Fuel Scarcity: Forex Crisis, Illegal Levies Hindering PMS Supply – Marketers
He said, “It is not possible for you to buy fuel at N170 when your actual cost is thrice that value. For instance, today, when PMS comes into this country, we transfer to marketers at N113 per litre for us to ensure N165 at the pump, so you must sell at N113 to them to be able to deliver at N165.
“That means whatever the cost, anything after that value, that is subsidy. Somebody has to pay for it. Everyone knows the price of PMS around the world. There is nowhere today that you can land a litre of PMS to the pumps at the N445 exchange rate, it is not possible.”
Speaking further, the NNPC boss said: “In some places, you are subsidizing up to N290 on every litre. With this regime, it is impossible for you to avoid all the wrong things that are happening. Round tripping, cross-border smuggling, document forgery-anywhere you have arbitrage, you will have these issues.”
Kyari further justified the engagement of private security contractors to secure its facilities in an effort to fight against oil theft in the country, saying it has paid off.
Speaker of the House of Representatives, Femi Gbajabiamila, said the summit was important for legislators and policymakers to gain valuable insights into the issues and achieve clarity on the actions needed to be taken to achieve greater transparency and accountability in the oil and gas industry.
Marija Peran, the Konrad-Adenauer-Foundation’s Resident Representative, called for greater transparency in the oil and gas sector, saying Nigeria, the largest oil and gas producer in Sub Saharan Africa, is ranked among the lowest in the UN Human Development Index at the same time.
