The Group Chief Executive Officer of NNPC Limited, Mele Kyari, has said that without the current subsidy on petrol, the actual importation and retail cost would be at N410 per litre as market conditions take price to thrice of N170 pump price.
Oil marketers are pushing for over N200 per liter as some stations in Abuja and Lagos city centres sell for N180 per liter while others in outskirts and neigbouring states are selling for over N200.
Speaking at the Legislative Transparency and Accountability Summit organised by the House of Representatives in Abuja on Wednesday, Kyari 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, 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. 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 exchange rate, it is not possible.”
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Speaking further, the NNPC boss said: “In some places, you are subsidizing up to N290 on every litre. With this regime, it is impossible for you to avoid all the wrong things that are happening. Round tripping, cross-border smuggling, document forgery-anywhere you have arbitrage, you will have these issues.”
Kyari further justified the engagement of private security contractors to secure its facilities in an effort to fight against oil theft in the country, saying it has paid off.