Kyari Mele, the group managing director of the Nigerian National Petroleum Corporation has revealed that petrol price will soon be increased.
This is according to the Nigerian National Petroleum Corporation, NNPC, Group Managing Director, Mele Kyari, who said that the Federal Government can no longer afford to subsidize the cost of buying petrol in the country.
Mr Kyari, who stated this on Thursday during the weekly ministerial briefing at the Presidential Villa, Abuja, said the Federal Government spends about N120 billion monthly on fuel subsidy monthly.
He disclosed that the actual cost of importation and handling charges amounts to N234 per litre, adding that the government has been selling the product at N162 per litre.
According to him, the trend can’t continue, saying that Nigerians would have to pay the actual cost sooner or later.
He argued that market forces must be allowed to determine the pump price of petrol in the country.
“Our current consumption is— evacuation from our depots is about 60 million liters per day. We are selling at 162 to the liter. Current market price is 234, actual market price today.
“The difference between the two, multiply by 60million times thirty, will give you per month.
“This is a simple arrangement you do. If you want exact figures from our book, I do not have it at this moment but it’s between N100billion and N120billion per month.
“We are putting the difference in the books of NNPC and we cannot continue to bear,” he stated.