Petrol Will Cost N410 With Subsidy, NNPC Says

According to Mele Kyari, the Group Chief Executive Officer of NNPC Limited, fuel will cost N410 in the nation if subsidies are eliminat3d.

On Wednesday, November 9, at the Legislative Transparency and Accountability Summit hosted by the House of Representatives in Abuja, Kyari added that there is now no place where you can buy a litre of PMS at the N445 exchange rate.

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.

“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 forg3ry-anywhere you have arbitrage, you will have these issues.”

Kyari also justified the engagement of private security contractors to secure its facilities in an effort to fight against oil th3ft in the country, adding that it has paid off.