The Federal Government of Nigeria injects between N140billion and N150billion monthly to sustain the current N162 per litre pump price of Premium Motor Spirit, popularly known as Petrol, from its actual N256.
Mele Kyari, Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), made the disclosure yesterday during a stakeholders meeting organized by the Corporation to brainstorm on how best to stop smuggling.
According to him, what we sell premium motor spirit, popularly known as petrol today is N162, but if we are to sell at the current exchange rate, we will be selling the product at about N256 to a litre. This difference is at a cost to the nation, which amounts to as much as between N140bn to N150bn cost to the country monthly.
He explained that with the high volume of daily consumption of the product, the country cannot sustain the subsidy payment.
Mallam Kyari also remarked that smuggling across the borders increased the daily consumption of Premium Motor Spirit (PMS) to 103 million litres per day in the month of May, 2021.