“If we are to sell at the market today at the current exchange rate, we will be selling the product at about N256 to a litre"
The Group Managing Director of Nigeria National Petroleum Corporation, Mele Kyari has said that subsidy needs to be removed to save foreign exchange cheque.
He said this on Wednesday at a stakeholders meeting organized by NNPC on how to tackle fuel smuggling out of the country.
The NNPC boss said due to increases in foreign exchange rate and prices of crude oil at the international market, the government can no longer sustain subsidy payment. He said the difference between prevailing market price and the current pump price of N162 per litre costs the federal government between N140 billion to N150 billion 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,” he stressed.
He therefore advocates that Nigerians should pay at least N256 per litre for PMS.
“If we are to sell at the market today at the current exchange rate, we will be selling the product at about N256 to a litre. What we sell today is N162, so the difference is at a cost to the nation,” he explained.
On smuggling fuel out of the country, Kyari admonished independent petroleum marketers to assist the government in checkmating their members, who engage in such unwholesome practice and economic sabotage to the nation.