NNPC Says Petrol Price Should Be ₦256/litre in Nigeria

NNPC Says Petrol Price Should Be ₦256/litre in Nigeria

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Mele Kyai, Group Managing Director, NNPC

The Group Managing Director of Nigerian National Petroleum Corporation (NNPC), Mele Kyari, says Nigerians should be paying at least ₦256 per litre for petrol as the country cannot sustain subsidy payment with the high volume of daily consumption.

Kyari disclosed this on Wednesday, June 23 at a stakeholders meeting organised by the NNPC to stop fuel smuggling.

Commenting on the current PMS and subsidy payment, Kyari noted that the petrol pump price should be ₦256 per litre given the current exchange rate.

“If we are to sell at the market today at the current exchange rate, we will be selling the product at about ₦256 to a litre. What we sell today is ₦162, so the difference is at a cost to the nation,’’ he said.

According to him, the country cannot sustain subsidy payment with the high volume of daily consumption, pointing out that the country spends ₦150 billion every month on subsidy.

The NNPC boss further explained: “As long as we don’t regulate volume until we are able to exit this current level, which I know so much work is going on, then we have to manage the volume that we are exposed to between this price of ₦162 and ₦256. The difference comes back to as much as ₦140 billion to ₦150 billion cost to the country monthly.

“As long as the volume goes up, that money continues to increase, and we have two sets of stress to face: the stress of supply and stress of foreign exchange for the NNPC. We may not see foreign exchange cheque taking place for importation.”

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