The Group Managing Director, Nigerian National Petroleum Company Limited (formerly Nigerian National Petroleum Corporation), Mele Kyari, has disclosed that NNPC cannot maintain a pump price of N170 per litre for Premium Motor Spirit, popularly called petrol or fuel.
Kyari, while speaking at the Legislative Transparency and Accountability Summit organised by the House of Representatives Committee on Anti-Corruption in Abuja on Wednesday, stated that the landing cost of fuel was thrice the amount.
Kyari stated, “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 (to a dollar) exchange rate. It is not possible.
“In some places, you are subsidising 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.
