The federal government on Thursday has admitted paying as much as N120 billion to subsidise the price of petrol monthly, saying the task is becoming unbearable to the pocket of the NNPC.
Kyari stated this during the weekly media briefing organised by the Presidential Communication Team at the State House, Abuja, on Thursday.
According to him, the actual cost of importation and handling charges amounts to N234 per litre, while the government is selling at N162 per litre.
He added that the NNPC absorbs the cost differential, which is recorded in its financial books.
Kyari, however, said that since NNPC could no longer bear the cost, sooner or later, Nigerians would have to pay the actual cost for the commodity.
According to the GMD, 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. The current market price is 234, the actual market price today.
“The difference between the two, multiplied 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 them 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.
Recall, that the agency came under attacks weeks ago when it released a template indicating a huge jump in the retail price of petrol from about N160 to N212.
The decision contradicted earlier assurances by the NNPC that there will be no increment in March, prompting the government to disown it and apologise.
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