The Federal Government says it currently subsidises the cost of Premium Motor Spirit (PMS) with about N120 billion ($263,248 million) monthly.

The Group General Manager (GMD), Nigerian National Petroleum Corporation (NNPC), Mele Kyari, made the disclosure at the fifth edition of the Special Ministerial Briefings coordinated by the Presidential Communication Team. 

Kyari explained that NNPC absorbs the cost differential which is recorded in its financial books.

Kyari, further explained that while the actual cost of importation and handling charges amounts to N234 per liter, the government is selling at N162 per liter.

He, however, said that the NNPC can no longer afford to bear the cost, adding that sooner or later Nigerians would have to pay the actual cost for the commodity. 

Kyari, who avoided calling the payment a subsidy, said the NNPC pays between N100-120 billion a month to keep the pump price at the current levels, insisting that market forces must be allowed to determine the pump price of petrol in the country. 

Minister of state for petroleum Timipre Sylva who briefed on the gains of the Petroleum Industry Bill, said the bill when passed will address grey areas of the oil sector.

Mr. Sylva said the law will encourage intended exit from fossil fuel to renewable energy as well as address the agitations of host communities over insufficient royalties.

PIB is expected to be passed by the Senate in April this year.