The Group Managing Director of Nigeria National Petroleum Corporation (NNPC), Mele Kyari, says petrol is currently being subsidised at the cost between N100 and N120 billion on monthly basis.
Kyari disclosed this Thursday while fielding questions from State House reporters at the fifth edition of the Special Ministerial Briefings coordinated by the Presidential Communication Team.
It comes amidst controversy about the removal of petrol subsidy between the administration of former president Goodluck Jonathan and current administration of President Muhammadu Buhari.
The NNPC GMD said the corporation could no longer bear the burden of the product currently being sold at N162 per litre.
He spoke after the Minister of State for Petroleum Resources, Timipre Sylva, had briefed on the efforts to ensure the passage of the Petroleum Industry Bill (PIB).
Kyari, who said NNPC absorbs the cost differential which is recorded in its financial books, revealed rhat while the actual cost of importation and handling charges amounts to N234 per liter, the government is selling at N162 per liter.
He said market forces must be allowed to determine the pump price of petrol in the country.
He however added that government was being considerate of actual impact of the price increase on Nigerians.