FG incurs N57bn debt on subsidy in 30 days

In the last 30 days, since Muhammadu Buhari assumed office as President, the country has incurred a total sum of N56.784bn in debts from the petrol subsidy regime. (PPPRA)

According to data obtained from the agency’s website on Friday, the country is said to be incurring petrol subsidy arrears to the tune of N47.32 per day on one litre of petrol.

Based on a daily petrol consumption figure of 40 million litres, a figure supplied by the Pipelines and Products Marketing Company (PPMC) the total subsidy cost on the product for the 30 days the Buhari government has been in power amounts to N56.784bn.

The current PPPRA figures put the total cost of Premium Motor Spirit (petrol) at N134.32 per litre, of which N118.83 is the landing cost while N15.49 is the sub-total of the margins.

According to the PPPRA, the cost of a litre of petrol with freight is N106.85; traders’ margin, N1.47; lightering expenses, N4.19; the Nigerian Ports Authority rate, N0.77; financing, N1.75; jetty depot thru’put charge, N0.80; and storage cost, N3.00.

For the distribution margins, retailers are entitled to N4.60 per litre of petrol; transporters, N2.99; dealers, N1.75; bridging fund, N5.85; marine transport average, N0.15; and administrative charge, N0.15.

For the period under review, only the Nigerian National Petroleum Corporation is said to be importing petrol because members of the Major Oil Marketers Association of Nigeria have refused to import owing to subsidy arrears owed them by the Federal Government.

Meanwhile, the transition committee set up by President Muhammadu Buhari shortly after he was declared winner of the March 28 presidential election had advised him to end the fuel subsidy programme and privatise the nation’s four refineries.

Sources in the APC were said to have revealed the recommendation to Reuters some days ago.

Buhari is said to be considering the recommendations made in the strategy report produced by the 19-member committee led by Ahmed Joda.

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