The Nigerian National Petroleum Company (NNPC) Ltd has clarified that it is not subsidizing petrol, but rather covering a “shortfall” between the landing cost and the selling price.
This comes as the company reveals it has spent N7.8 trillion in the first seven months of 2024 to cover this shortfall.
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“We are not subsidizing petrol. We are managing the difference between the landing cost and the selling price in coordination with the Federation,” said Umar Ajiya, NNPC’s Chief Financial Officer.
Ajiya emphasized that the company is selling petrol at half the landing cost, which is around N1,200 per litre, while the official pump price is around N600 per litre.
“We have spent N7.8 trillion in the first seven months of 2024 to cover this shortfall. This is not a subsidy, but rather a management of the difference between the landing cost and the selling price,” he added.
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