N253 Subsidy Paid On Every Liter Of Imported 66 Million Liters Of Petrol Daily

Nigerian National Petroleum Company Limited (NNPCL) says N253 is now being paid on every liter of petrol imported into the country.

The subsidy cost, according to the company, follows the landing cost of a liter of petrol at N371.3 kobo, being sold at a pump price of N118.

Group managing director of NNPCL, Mele Kyari, gave this indication on Wednesday in Abuja, at the ongoing energy summit organized by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN)

According to him, 66 million liters are being evacuated daily from oil depots nationwide by marketers, to meet the demand of the product in the country.

Kyari said anytime the NNPCL reduced its daily supply to below 60 million liters, there would be shortage of the product on the streets.

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He explained that the 66 million liters might not be actual daily consumption figure in the country, but reflects the level of consumption.

The NNPCL group Managing Director said scrapping of petrol subsidy would reduce the consumption level in the country, and discourage the smuggling of subsidized petrol to the neighboring country.

Buhari administration in its proposed 2023 budget, intends to stop petrol subsidy in June 2023, a month after president Buhari would have left office.