THE Nigeria National Petroleum Corporation (NNPC) has revealed that it incurred N5.34 billion cost for fuel in June, few months after it changed its pricing method in an effort to eliminate subsidies.
NNPC made this know through its spokesman, Kennie Obateru who said the costs represented temporary payments to marketers, who buy imported fuel and then sell it on, for stocks they held when the subsidy was removed, and would be spread over six months.
“Since the subsidy removal started with reduction in pump price, marketers have to be paid the differential of the (government) verified stock they held,” he told Reuters.
Recall that in March,t Nigeria slashed its gasoline pump price and said it had eliminated subsidies through a new price cap that maintained government control, but allowed prices to move with the market. Nigeria’s gasoline prices had been kept artificially low at N145 per litre.
