- Nigerians may have to pay more for gasoline if the federal government stops injecting money every month to subsidize the price of the product
- Mele Kyari , the Group Managing Director of NNPC, has announced the amount the federal government spends each month on gasoline subsidies
- However, some Nigerians have warned that commodity prices in the country would rise if a subsidy on petroleum products will be completely removed
FCT, Abuja – The Group Managing Director of the Nigerian National Petroleum Corporation ( NNPC), Mele Kyari, says Nigerians should pay at least N256 per liter for gasoline given the current exchange rate.
Kyari made the statement at a stakeholder meeting organized by the NNPC to stop fuel smuggling on Wednesday June 23, reported Daily Trust.
The NNPC chief stated, however, that the federal government would inject between 140 and 150 billion N monthly to keep the price of gasoline at 162 N per liter the actual N256.
“If we are to sell on the market today at the current exchange rate, we will sell the product for around N256 per liter . What we sell today is N162, so the difference is borne by the nation.
“The difference is up to 140 billion to 150 billion N per month.”
Kyari says the gasoline subsidy is not sustainable
According to The Nation, Kyari stated that the country cannot maintain the subsidy payments with the high daily consumption.
He found that smuggling across borders increased the daily consumption of Premium Motor Spirit (PMS) to 103 million liters per day in May.
The NNPC chief stated that the introduction of Operation White and the involvement of the Economic and Financial Crimes Commission (EFCC) have reviewed the smuggling situation.
NNPC is raising $ 2.5 billion to help acquire a stake in the Fund Dangote Refinery
In the meantime, NNPC plans to raise 2.5 billion US Thurs. llar secured by the African Export-Import Bank to buy a stake in the Dangote refinery.
The state-owned company said it had a 20% stake in of Dangote Refinery and has entered into negotiations with company officials – these discussions appear to have justified NNPC’s need to raise $ 2.5 billion.
Next to the Dangote Refinery The oil importer is also aiming for stakes in five other private refineries in the country, most of which are still in the development phase.