The Group Managing Director of Nigeria National Petroleum Corporation NNPC, Mele Kyari declared Thursday that the actual cost of a litre of petrol is N234, as against the pump price of N162-N165.
Kyari stated this during the weekly media briefing organised by the Presidential Communication Team at the State House, Abuja.
He said the NNPC has been absorbing the cost differential at a cost between N100billion and N120billion monthly.
He did not state when the subsidy set in, after government deregulated the petrol sector in 2019.
Kyari said that since NNPC could no longer bear the cost, sooner or later Nigerians would have to pay the actual cost for the commodity.
He said that market forces must be allowed to determine the pump price of petrol in the country.
“Our current consumption (evacuation) from our depots is about 60million litres per day. We are selling at N162 a litre. Current market price is N234, actual market price today.
“The difference between the two, multiply by 60million, times thirty, will give you per month.
“This is a simple calculation you do. If you want exact figures from our book, I do not have it from 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 said.
The Minister of State for Petroleum Resources, Timipre Sylva, who also spoke at the event, expressed the hope that the Petroleum Industry Bill (PIB) would be passed into law in April.
According to him, frantic efforts are being made by the legislators to complete work on the bill and pass it, in line with the aspirations of critical stakeholders in the petroleum sector.
“The National Assembly has expressed the intent to pass the PIB into law by April 2021, every effort is being made to support the National Assembly to meet this target,” he said.
While enumerating the gains of the PIB to Nigerians, the minister said it would create additional infrastructure across petroleum value chain.
He added that it would increase petroleum activities as well as enhance the livelihood of inhabitants of oil producing communities.
He said the bill would create additional infrastructure across the petroleum value chain especially from mid-stream and down-stream.
He added that critical infrastructure would also be developed, while utilising the incremental revenue from increased petroleum activities.
Sylva said it would also provide additional infrastructure in the host communities arising from the host community trust.
The minister further stated that more businesses would be set up to support increased activities within the petroleum value chain.
“Greater confidence would be engendered with certainty in the petroleum industry, which will lead to increased investments.
“Nigeria will occupy its place among commits of nations who have updated their petroleum industry laws in line with current realities.
“The bill will also enable a structured monetisation of fossil fuel resources before the whole world turns to renewables.
“It will also impact positively on the Nigerian economy with multiplier effect on the petroleum sector,’’ he said.
The minister also expressed the hope that the bill when passed, would lead to an increase in the use of gas for domestic purposes.
He said this would create a healthier society as well as provide job opportunities across the country.