The Group Managing Director (GMD) of the Nigerian National Petroleum Corporation (NNPC), Malam Mele Kyari, has insisted that the inability to find a suitable price for petrol has forced the continuation of the subsidy scheme.
Kyari spoke on Channels Television’s Sunrise Daily programme on Tuesday.
The NNPC is presently the only official importer of petroleum products into Nigeria.
While its landing price is about N256 per litre, according to Kyari, petrol sells for N162 to N165 in most parts of Lagos State.
“The reality is that we cannot afford it,” Kyari said.
“But also the second reality is if you don’t do something smart, you could end up throwing prices at Nigerians that are well above prices that they should pay for.
“The engagement is aimed at making sure there is a reasonable level of pricing that we can do that will recover the cost.
“Petroleum consumption in Nigeria is not up to 60 million litres per day, but we supply up to that,” he added.
“We always plan with 60 million litres, because anytime we do below that, there is a crisis.”