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.
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.
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