As reported by The Guardian Newspaper, the Federal Government have admitted to paying huge sums for subsidizing petrol. According to the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mele Kyari, FG pays as much as N120 billion in petrol subsidy per month. Kyari revealed this at the fifth edition of the special ministerial briefings coordinated by the presidential communications team.
The Guardian reports that according to this revelation, petrol subsidy fee is higher than the N70 billion appropriated to Universal Basic Education (UBEC) in the 2021 budget, as well as the N45.19 billion for immunization.
For selling Premium Motor Spirit (PMS) otherwise called petrol at N162 per litre instead of the current landing price of N234 for a litre, the Federal Government says it is now paying as much as N120 billion monthly to subsidize the estimated 60 million litres of petrol the country consumes each day.
NNPC had insists that the pump price of petrol will remain at N162 per litre in April to allow government dialogue with the organised labour on the situation. But the assurances notwithstanding, the Group MD, Kyari, has insisted that price would inevitably increase, stressing that market forces must be allowed to determine the pump price of petrol in the country.
Kyari lamented the burden NNPC has inflicted on itself by the ongoing subsidisation of the cost of premium motor spirit (PMS), otherwise known as petrol in the country, saying that sooner than later Nigerians have to pay the actual cost for the commodity. Shocking!