Subsidy on petrol rises to N9.09 per litre

The amount the Federal Government is subsidizing Premium Motor Spirit, PMS, also known as petrol, rose, yesterday, to N9.09 per litre, according to the latest pricing template released by the Petroleum Products Pricing Regulatory Agency, PPPRA.

Specifically, this means that if the Federal Government is to hands off subsidizing the product and allow market forces determine the price, Nigerians would be made to pay a minimum of N95.09 to buy a litre of the petrol from Nigerian National Petroleum Corporation’s (NNPC) retail stations, and N95.74 per litre from other marketers. This was even as the unending fuel crisis witnessed across the country continued, yesterday, showing no sign of abating, with some oil marketers blaming the NNPC’s suspension of product allocation to some of them. The PPPRA, in its template, released yesterday, put the cost plus freight of imported petrol at N74.83 per litre, with other cost elements hiking the landing cost of the product for marketers to N81.44 per litre. With a distribution margins put at N14.30 per litre, the Expected Open Market price of the product rose to N95.74 per litre. However, the Federal Government fixed the ex-depot price, which is the price at which marketers purchase the products from depots, at N76.50 per litre, while the retail price was fixed at N86.50 per litre.