Fuel Will Sell Less Than N87 Next Year – NNPC

Fuel Will Sell Less Than N87 Next Year – NNPC

Chris Steven , Abuja
The Group General Manager, Corporate Planning and Strategy, Nigerian National Petroleum Corporation (NNPC) Bello Rabiu has said that the corporation is working on a new template that may reduce the cost of fuel to less than N87 a litre in 2016
The template, according to him is being done with the Petroleum Product Pricing Regulatory Agency (PPPRA).
While speaking with journalists in Abuja Rabiu said the cost of bringing one litre of petrol into the country was N65 while the logistics of bringing it to the depot and to the filling stations is about N10.55.
He added that the distribution cost is N15.49 which pushes the total cost in the open market N91.52/litre.
“ If you take away N87, which is regulated price, it means that subsidy is basically N4.85 and If we are consuming 41 million litres, it means we are subsidizing N200 million a day.” He said
Speaking on how the government would reduce the cost of fuel importation,Rabiu said: “If we can look at this one that is N91.52 and we pray we can get about N15 off there, that will bring it down to a little more or less than N80. If we take off N10.50, we come down to N81. If we take it down to N7.52, we come down to N85.
According to him, “the government has already seen the possibility of reducing the cost by an average of N10.”
He also noted that the country has been paying far more than its daily consumption of fuel for subsidy
“We are trying to ensure that we pay for only what the country consumes,” Rabiu submitted.
On her part,the Managing Director, Petroleum Pipelines & Products Marketing Company (PPPMC) Limited, Esther Nnamdi-Ogbue, said the Kaduna Refinery will begin production today (Saturday)
She noted that the Atlas Cove and Mosimi pipelines are now functional
The PPMC MD said that between now and the end of the month, 12 vessels of products would come in with at least 30,000 metric tonnes each.
The maintained that there will be a ‘queueless’ Christmas season in the country.