With landing cost of fuel at N234 per litre, the Federal Government on Thursday admitted paying as much as N120 billion to subsidise the price of petrol monthly as it currently sells N162.
This was disclosed by the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mele Kyari, at the fifth edition of the special ministerial briefings coordinated by the presidential communications team.
The NNPC boss says it is now paying as much as N120 billion monthly to subsidize the estimated 60 million litres of petrol the country consumes daily.
This is coming as the NNPC, the government agency bearing the burden of the subsidy, insisted that the pump price of the product will remain N162 per litre in the month of April to allow government dialogue with the organised labour on the situation. Nigerians will have to bear the burden by April even as organized labour is set for a showdown with the government.
Although the price of crude oil has steadily increased, however it won’t affect positively the budget deficit due to the exchange rate and the global crude price determine local pump price.