According to the Petroleum Products Pricing Regulatory Agency (PPPRA), the government subsidy on petrol fell from a previous high, resulting in a drop of 72 percent on every litre.
PPPRA stated that petrol subsidy dropped from N51.61 per litre recorded on June 11, 2015 to a low of N14.39 accounting for the 72 percent drop mark. The agency revealed this in its recent data on fuel subsidy.
The drop in federal government subsidy is attributed to the current decline in crude oil prices on the international market, as the products have fallen below the $50 per barrel market.
As at Monday, October 5, Bonny light sells for below $47 per barrel while Brent sells for below $49 per barrel in global trade.
PPPRA in its pricing template disclosed on Friday that the landing cost for (Premium Motor Spirit) petrol was N85.90 per litre while the Expected Open Market Price of PMS was N101.39 per litre and this accounted for the N14.89 price which is the difference between the Expected Open Market Price and the regulated pump price of N87 per litre.
Taking into consideration the Nigerian National Petroleum Corporation (NNPC)’s record that Nigeria consumes about 40 million litres of petroleum daily, the total cost of subsidy i.e. total consumption multiplied by subsidy per litre, will be about N575.6m per day.
See Also: REVEALED! How NNPC Loses N287bn Annually
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