We sell petrol at half price of landing cost – NNPC

We sell petrol at half price of landing cost – NNPC

The Chief Financial Officer (CFO), of the Nigeria National Petroleum Company Ltd (NNPCL), Alhaji Umar Ajiya has disclosed that the government pays the company to sell PMS at half price of the landing cost- what he calls shortfall.

The C.F.O., provided this clarification on Monday in Abuja while presenting the company’s 2023 full-year result where it recorded profits of N3.3 trillion.

Ajiya stated that NNPC Ltd. has solely been managing the shortfall in Premium Motor Spirit (PMS) imports between the company and the federation and has not disbursed any subsidies to marketers over the past nine months.

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He stated, “In the last eight to nine months, the NNPC Ltd., has not paid anybody a dime as subsidy, no one has been paid kobo by the NNPC Ltd. in the name of subsidy. No marketer has received any money from us by way of subsidy.” 

“What has been happening is that we have been importing PMS, which has been landing at a certain cost price and the government tells us to sell it at half price.” 

“So the difference between the landing price and that half price is what we call shortfall. And the deal is between the Federation and NNPC Ltd., to reconcile, sometimes they give us money, so there is no money exchanging hands with any marketer in the name of subsidy.” 

We sell petrol at half price of landing cost – NNPC