The Federal Government has recommenced the payment of subsidy on petrol
as it subsidised the commodity by N5.84 for every litre of premium motor
spirit consumed in Nigeria.
It also announced that the current official pump prices of petrol would
remain at N86 per litre when purchased at filling stations run by the
Nigerian National Petroleum Corporation and N86.5 per litre when sold at
outlets operated by other oil marketers.
Subsidy on petrol was stopped in January after the review of the pricing template by the government.
The government further said the lingering petrol scarcity would end within few days.
Figures from the pricing templates of the PPPRA released on Saturday,
showed that the Federal Government was paying N5.84 as subsidy on every
litre of petrol sold at non-NNPC filling stations.
The PPPRA is the agency of the Federal Government that regulates the
prices of white products — petrol and kerosene, across the country.
According to the agency, the Expected Open Market Price of petrol for
non-NNPC stations as at April 2, 2016, was N92.34 per litre, against an
official pump price of N86.5 per litre, leaving an under-recovery or
subsidy of N5.84 per litre.
Similarly, the template for NNPC-run stations showed that the government
was paying N5.80 per litre as subsidy, as the EOMP for outlets in this
category was N91.80 per litre as against an official rate of N86 per
litre.
The EOMP is the actual cost of petrol without subsidy and comprises of
the landing cost of the product as well as its subtotal margins like
transporters charge, admin fee, dealers cost, bridging fund, etc.
On the retained pump price of petrol, the Acting Executive Secretary,
PPPRA, Mrs. Sotonye Iyoyo, said, “The agency is retaining the retail
prices of N86.00 for the NNPC, and N86.50 for the other marketing
companies. The pump price of household kerosene also remains unchanged
from what it was in the last quarter.
“Therefore, marketers are advised to ensure that there is no price
distortion in their respective retail outlets. PPPRA, however, shall
continue to monitor the global oil market performances, and come up, at
appropriate time, with reasonable changes consistent with the
newly-adopted price modulation principles.”