The Nigerian National Petroleum Company (NNPC) Limited said that without subsidy, petrol will sell for N462 per liter.
It said the average international market-determined landing cost in the second quarter of this year was $1,283 per metric tonne. Marketing and distribution cost is N46/liter, it said.
A combination of the cost elements translates to a retail pump price of N462/liter, an average subsidy of N297/liter, and an annual estimate of N6.5 trillion on the assumption of 60 million liters of daily premium motor spirit (PMS or petrol) supply.
The NNPCL offered to submit itself for a forensic audit of fuel supply and subsidy management. It also insisted that the daily fuel supply is 68 million liters.
In a statement by Group General Manager, Mallam Garba Deen Muhammad, the NNPC said the average supply corresponded with the imports.
He was responding to last Thursday’s comments by Comptroller-General of Customs Hameed Ali, who said he found it hard to understand why the NNPC, which put Nigeria’s daily fuel consumption at 60 million liters, releases 98 million liters into the market.
Ali had spoken during an interactive session with the House of Representatives Committee on Finance on the 2023-2025 Medium Term Expenditure Frame and Fiscal Strategy Paper.
Minister of Finance, Zainab Ahmed, speaking when she appeared before the panel on August 18, put the projected daily payment for fuel subsidy at N18.39 billion.
“The total amount of subsidy per day is N18.397 billion per day,” she said.
