The Nigerian National Petroleum Company Limited (NNPCL) has said about N400 billion is spent to subsidize petrol every month, amounting to about N202 subsidy per litre.
This is despite the prevailing scarcity of petroleum products which has shot up the price to as much as N350 per litre in many parts of the country.
The Group Chief Executive Officer of the NNPCL, Malam Mele Kyari, disclosed the subsidy payment at the final cut-over ceremony of NNPC and the birth of NNPCL at the corporation’s towers in Abuja yesterday.
Kyari explained that the oil company was spending about 202 naira as subsidy on every litre of petrol consumed across the country, stressing that about 65 million litres of PMS were pumped daily into the market by NNPCL.
Although he said the oil company would continue to meet its obligations by providing PMS for Nigeria, Kyari pointed out that the over 400 billion naira monthly subsidy had been a severe strain on NNPCL’s cash flow.
According to him, NNPCL is the sole importer of petrol into Nigeria, and has continued to play this role for several years running, bearing the huge cost of fuel subsidy.
He said other private oil marketers stopped importing petrol into Nigeria due to the difficulty encountered in accessing the United States dollars, required for the imports of PMS.
“It is a strain on the cash flow of our company when you don’t get a refund from the ministry of finance. But we will continue to support the country and provide energy security to the country”, he stated.
