New Telegraph

NNPC loses over N120bn monthly on fuel subsidy, says Kyari

The Nigerian National Petroleum Corporation (NNPC) has said that increase in pump price of fuel is inevitable as it is losing over N120 billion to subsidy monthly.
This was disclosed by the Group Managing Director of the company, Mele Kyari, at the weekly media briefing at the Presidential Villa Thursday.
According to him, the current landing cost of fuel in the country as at today stands at N234 per litre while the recommended retail price is N162 per litre.
He disclosed that the daily volume of fuel comsumed in the country stands at 60 million litres.
By this calculation, the NNPC is actually paying N129.6 billion as differential between the actual cost and recommended retail price monthly even when the GMC refrained from calling the balance a subsidy.
Kyari, however, said that the corporation may no longer have the capacity to continue to shoulder the differences and as such would soon have to shift it to the consumers.

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