The Nigerian National Petroleum Corporation (NNPC) has declared it would soon stop bearing the over N120 billion monthly subsidy cost it expends on Premium Motor Spirit (PMS) popularly known as petrol.
Group General Manager (GMD) of the NNPC, Mele Kyari, stated this on Thursday while reacting to the status of petrol’s pump price in the country.
He spoke during the weekly ministerial briefing coordinated by the presidential communication team.
Kyari explained the NNPC absorbs the cost differential, which is recorded in its financial books, adding while the actual cost of importation and handling charges amounts to N234 per litre, the government is selling at N162 per litre.
Explaining why the heavy subsidy must be stopped, Kyari said the burden had become too heavy to bear.