Petroleum Products Goes Half The Price But Not Subsidy— NNPCL

Post created on 10:35 am

Controversies trail the removal of subsidy from Premium Motor Spirit, popularly known as fuel as Nigerian National Petroleum Company (NNPC) Ltd says it sells half the price of PMS landing cost.

Some documents were earlier seen where subsidy was included in the budget, but the presidency refuted the claims that subsidy was gone.

A few months back, former Governor of Kaduna State, Nasir El-rufai, had stated that the money Nigeria spent on subsidies was over the board than what was earlier obtainable.

But in a press briefing on Monday, the Chief Financial Officer (CFO) of the NNPC, Abuba Umar Ajiya, told NAN that the national oil company is only bearing what he called the “shortfall” and not a subsidy.

Ajiya confirmed that it cost NNPC N7.8 trillion to make up for the “shortfall” in the first seven months of 2024, that is January to July, since the official pump price for PMS is N600.

According to Ajiya, NNPCL is only taking care of the shortfall in petrol importation between it and the federation.

It should be noted that subsidy simply means selling a product below the cost price, but in an official communication cited by TheCable between NNPCL and President Tinubu, the word shortfall was used to replace subsidy.