Connect with us


FG still subsidising petrol, outside budgetary provision



Although provision was not made for subsidy in the 2016 budget, it has been discovered that the federal government is presently subsidising Premium Motor Spirit (PMS) otherwise known as petrol at N12.62 per litre.

This is for petrol imported directly by the Nigerian National Petroleum Corporation (NNPC) and dispensed at its retail outlets.

For other oil marketers however, government is subsidizing at N12.88 per litre.

Read also: FG yet to determine takeoff date for Yuan deal

The figures are contained in the latest Petroleum Product Pricing Regulatory Agency (PPPRA) Template released in Abuja.

According to the agency, though provision was not made for subsidy in the 2016 budget, it would be defrayed from “recoveries’’ made from oil transactions in the first quarter of 2016.

It also stated that between January and March, 2016, government was able to save about N10 billion as a result of selling the product above the Expected Open Market Price, adding, that without the subsidy and given the landing cost of the product, it ought to be sold at N98.62 per litre at NNPC outlets and at N99.38 per litre by major and independent oil marketers.




RipplesNigeria… without borders, without fears

Join the conversation


Support Ripples Nigeria, hold up solutions journalism

Balanced, fearless journalism driven by data comes at huge financial costs.

As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.

If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.

Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.

Donate Now