Petrol subsidy rises by 1,142% in seven weeks

The amount payable by the Federal Government to oil marketers as subsidy on petrol has risen by over 1,142 per cent in the past seven weeks.

As of January 21 this year, the subsidy payable by the government on every litre of petrol was N2.84, but the latest information on the Petroleum Products Pricing Regulatory Agency’s website on Monday showed that the amount payable as subsidy on the product was now N35.28 per litre.

The PPPRA puts the current landing cost of the product at N106.79 per litre; while the total cost, comprising landing cost and distribution margin, was put at N122.28. However, the product still sells for the regulated price of N87 per litre at filling stations across the country.

Components that make up the landing cost include cost and freight, N95.23; traders’ margin, N1.47; lightering expenses, N4.16; NPA charge, N0.77; financing, N1.37; jetty depot thorough put charge, N0.80; and storage charge, N3.00.