Nigerians To Pay N234 For Per -Litre of Petrol As FG Finally Opens-Up - EDU-BIZNEWS


Friday, March 26, 2021

Nigerians To Pay N234 For Per -Litre of Petrol As FG Finally Opens-Up

Nigerians are to pay N234 per litre of petrol ,as the Federal Government finally opened up that the payment of N120billion as monthly subsidy is no longer sustainable

Edu-Biznews recalled that the Petroluem Pricing Regulation Agency(PPRA) earlier released a new template to reflect N212.60 pump price, arising from the then global market price of crude at $70 per barrel, following the deregulation of the down stream sector in the country, which the NNPC asked Nigerians to disregard and continue to pay N162 per litre for the product

But the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mele Kyari finally opened up during the fifth edition of the special ministerial briefings coordinated by the presidential communications team, that the Federal Government could no  longer sustain the N162 pump price 

The N120billion expended monthly according to the  Kyari, is higher than the N70 billion the government budgeted for the provision of Universal Basic Education (UBEC) in the 2021 budget, as well as the N45.19 billion allocated for immunization.
The NNPC boss however clarified that  the government agency bearing the burden of the subsidy, would continue to do so for Nigerians to buy the product at the pump price of N162 per litre in the month of April, to allow government dialogue with the organised labour on the situation

He explained that the Federal Government was spending N120billion monthly to subsidize 60million of litres of petrol being consumed in the country, instead of allowing Nigerians to pay  the current landing price of N234 for a litre

The Group MD, 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 PMS in the country, saying that sooner than later Nigerians have to pay the actual cost for the commodity.

According to him, “Our current consumption is — evacuation from our depots about 60 million liters, per day. We are selling at N162 to the liter. Current market price is N234, the actual market price today. 

"The difference between the two, multiply by 60 million times thirty, will give you the real price per month. If you want exact figures from our book, I do not have them from this moment but it’s between N100 billion and N120 billion per month. We cannot continue to bear this,” Kyari stated  

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