The federal government is currently subsidising petrol because the Nigerian National Petroleum Corporation (NNPC) which supplies more than 70 per cent of fuel consumed in the country is doing so at a loss under the current foreign exchange regime.
Oil marketers and critical downstream stakeholders revealed this at a stakeholders consultation on the Draft National Oil Policy held recently in Abuja.
They admitted that the government has been bearing the brunt to keep the price at the current rate as the real cost of petrol should be far above N145 per litre if all the cost components are adequately captured.
But local downstream players Oando, Total and other key stakeholders who spoke during the forum stated that subsidy was still being paid to maintain fuel price at N145/litre.
The Executive Secretary of the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), Olufemi Adewole, said that there was definitely some form of subsidy going on somewhere that somebody is bearing the brunt