… Landing cost hits N315/litre
From Uche Usim, Abuja
The Nigerian National Petroleum Company Limited, on Friday, disclosed the monthly subsidy payouts on petrol has risen above N400 billion, as local refineries lay prostrate.
The Group Chief Executive Officer of NNPCL, Mr Mele Kyari, disclosed this at the headquarters of the oil firm at the ongoing Final Cutover to NNPC Limited, from being a federal government Corporation.
According to him, the national oil company currently spends about N202 as subsidy on every litre of petrol consumed across the country, adding that about 65 million litres of petrol was pumped into the Nigerian market daimeet the consumption needs of the country.
The NNPCL boss said, “Today, by law and the provisions of the Appropriation Act, there is subsidy on the supply of petroleum products, particularly PMS into our country. In current data terms, three days ago the landing cost was around N315/litre.
“Our customers are here, we are transferring to each of them at N113/litre. That means there’s a difference of close to N202 for every litre of PMS we import into this country. In computation, N202 multiplied by 66.5 million litres, multiplied by 30 will give you over N400bn of subsidy every month.”
Kyari said the continuous funding of petrol subsidy by NNPCL had been ongoing without refunds from the Federal Ministry of Finance, Budget and National Planning, despite the fact that subsidy had been budgeted for in the Appropriation Act.
“There is a budget provision for it. Our country has decided to do this. So we are happy to deliver this, but it is also a drain on our cash-flow, and I must emphasis this.
“For as we continue to support this, you will agree with me that it will be extremely challenging for us to continue to fund this from the cash-flow of the company when you do not get refunds from the Ministry of Finance,” he stated.
Kyari added, “We are working with them (finance ministry), but it is an extensive pain on the cash-flow of our account. However, we will continue to support this country and deliver energy security.”
While assuring the public of meeting its petrol needs, Kyari described subsidy payouts as a deep cut on its finances and hurting its operations in some ways.
NNPCL is the sole importer of petrol into Nigeria and has continued to play this role for several years running, bearing the huge cost of fuel subsidy.
Other private oil marketers stopped importing petrol into Nigeria due to the difficulty encountered in accessing the United States dollars, required for the importation of petrol.