Federal government to help subsidise petrol for Nigerians with N102.96bn in March, report claims
- About N102.96bn will likely be spent on petrol subsidy in March
- Recall that the PPPRA recently released a pricing template for the commodity
- The template and consumption figure was used in arriving at the subsidy rate
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A subsidy is likely to gulp around N102.96bn this month of March if the recent pricing template published by Petroleum Products Pricing Regulatory Agency (PPPRA) is anything to go by.
The Nigerian National Petroleum Corporation may spend N102.96bn on petrol subsidy this month, going by the recent pricing template for the commodity.
Recall that the government agency pegged the expected new lower and upper prices for petrol at retail outlets in March 2021 at between N209.61/litre and N212.61/litre.
It also put the ex-depot price of petrol for the month at N206.42/litre and pegged the expected landing cost at N189.61/litre, Punch reports.
Given that Nigeria consumes about 57.44 million litres of petrol daily and also on the indices that FG is subsidising petrol by N57.82/litre.
Multiplying this by the 57.44 million litres consumed across the country daily and the 31 days in March, shows NNPC will spend about N102.96bn as petrol subsidy this month.
Meanwhile, Nigerians on Friday, March 12, woke up to the news that a litre of petrol which used to cost about N162 per litre will now be sold for N212.11 per litre.
This is according to PPPRA's projection which is contained in its pricing template for the month of March.
JJ. Omojuwa, @Omojuwa, tweeted:
"This conundrum is a design; global oil prices go up, Nigeria’s FX revenue automatically increases due to its oil sales, but on the flip side of that coin, Nigeria’s petrol imports price increase due to the same effect. Because refining oil locally is rocket science #FuelPriceHike"
However, the FG denied the report.
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Aanu Adegun is a politics and current affairs content editor at Legit.ng with over 7 years of experience in both digital and traditional media. A graduate of English Studies from Adekunle Ajasin University, Akungba Akoko, Ondo state, Aanu started his journalism career as a features writer. Aanu, who is also a creative writer has written books and children magazines. He once anchored some specialised pages of a national newspaper. Aanu is also a satirist.