N170 a litre petrol price not sustainable – Mele Kyari
The Nigerian National Petroleum Company Limited has revealed that it could no longer keep up with the N170 per litre pump price of premium motor spirit (petrol).
Mele Kyari, the group’s managing director made the assertion while addressing the Legislative Transparency and Accountability Summit organised by the House of Representatives Committee on Anti-Corruption in Abuja.
He stressed that the NNPC could not sell lower than N510 per litre as the President Muhammadu Buhari regime geared towards the phase-out of the fuel subsidy era.
He added that it was hard to maintain the N170 per litre pump price of fuel because PMS now costs three times the value of the N170 it is currently selling for, which is N510.
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.”
“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,” he added.
“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,” he added.
Kyari further added that the subsidy cost for petrol hovers at about N290 per litre in parts of the country, adding that subsidy costs about N19 billion a day.