|Chief Executive Officer of NNPC, Mele Kyari Credit: NNPC archives Source: Twitter|
The NNPC has said that petrol could cost as much as N462 per litre when the subsidy is removed in 2023
The company said it pays about N297 per litre to subsidise petrol in the country and stated that the price would increase significantly in 2023
It said that the total landing cost for petrol is about $1.283 per litre for the second quarter of 2022
According to the NNPC, the average daily importation of fuel between January and August 2022 was 68 million litres which it pays N297 per litre to subsidise.
A statement by the company said the total volume of petrol imported into Nigeria was 16.46 billion litres since January 2022 and translated to a supply of 68 million, a BusinessDay report said
Company moves to charge federal government for subsidy
The company stated that it imported about 22.35 billion litres in 2021, reaching 61 million litres per day.
Oil marketers have been forced to review their pricing following the rising price of crude oil.
Due to this, the NNPC has become the supplier of last resort for marketers in Nigeria and has continued to report the monthly petrol cost under-recoveries to the appropriate authorities.
The company stated that the average second-quarter of 2022 international market set the landing cost of petrol at $1,283 per metric tonne and the approved marketing and distribution cost of A146 per litre. Also, these cost elements translate to a retail pump price of N462 per litre and N297 per litre for an average subsidy.
The costs also translate to an annual estimate of N46.5 trillion on the belief of 60 million litres of petrol supply every day. However, the NNPC said this would continue to be adjusted by market demand.
NNPC had said it will start to charge the federal government for subsidy beginning next year.
In seven months, NNPC remits nothing to Federal Government
Recall Legit.ng reported that the Nigerian National Petroleum Company Limited (NNPC) has not remitted into the federation account for seven consecutive months as it battles huge subsidy payments.
The company, which said it is adopting the Saudi Arabia-owned Aramco model, has deducted funds meant for the Federation Accounts Allocation Committee (FAAC) to cover petrol subsidy costs over time, resulting in zero revenue payments to the federal government.
According to the latest report by the company, N448,78 billion was deducted in July to cover subsidy costs