Mele Kyari, Group Chief Executive Officer of NNPC Limited, has explained that without the existing petrol subsidy, the true importation and retail cost would be N410 per litre as market conditions push the price to triple that of the N170 pump price.
He stated this yesterday at the Legislative Transparency and Accountability Summit organised by the House of Representatives in Abuja on Wednesday.
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He said, “It is not possible for you to buy fuel at N170 when your actual cost is thrice that value. For instance, today, when PMS comes into this country, we transfer to marketers at N113 per litre for us to ensure N165 at the pump, so you must sell at N113 to them to be able to deliver at N165.
“That means whatever the cost, anything after that value, that is subsidy. Somebody has to pay for it. Everyone knows the price of PMS around the world. There is nowhere today that you can land a litre of PMS to the pumps at the N445 exchange rate, it is not possible.”