Group Managing Director of Nigeria National Petroleum Corporation, NNPC, Mele Kyari, has admitted that the Federal Government is currently subsidising petrol on a monthly basis with not more N120 billion.
Kyari disclosed this on Thursday while fielding questions from State House Correspondents at the 5th edition of the Special Ministerial Briefings coordinated by the Presidential Communication Team.
This comes amidst controversy about the removal of petrol subsidy between the administration of former President Goodluck Jonathan and the current administration of President Muhammadu Buhari.
While lamenting that the corporation could no longer bear the burden of the product currently being sold at N162 per litre, Kyari said NNPC absorbs the cost differential which is recorded in its financial books’
He revealed that while the actual cost of importation and handling charges amounts to N234 per liter, the government is selling at N162 per liter.
Kyari who spoke shortly after the Minister of State for Petroleum Resources, Timipre Sylva, had briefed on the efforts to ensure the passage of the Petroleum Industry Bill, PIB, said market forces must be allowed to determine the pump price of petrol in the country.
He however added that the federal government was being considerate of actual impact of the price increase on Nigerians.
