Subsidy stages comeback as petrol open market price hits N160 per litre

New findings have revealed that the market open price of petrol has hit N160 per litre. This is as a result of the landing cost that is within the region of N138 per litre.
The Guardian, at the weekend gathered that the upward movement of the price was informed by the rise in the price of crude oil at the international market.

With the new development, the Nigerian National Petroleum Corporation (NNPC), which has now assumed the status of sole importer of petrol into the country pays about N750million daily on subsidy of petrol as the price modulation introduced in May last year finally crumbled.

NNPC pays additional N15 per litre on every litre of petrol as the national consumption figure hits 50 million litres during the yuletide period. However, this consumption figure is expected to lower to around 45 million litres from February.

In addition to the landing cost at N138 per litre, there are other costs that include retailers (N6), transporter allowance (N3.36), dealers (N2.36), bridging fund (N6.20), marine transport average (N0.15) and administration charge (N0.30), which come to N18.37. The amount petrol should be sold at the pump price should be N156.37, as claimed bythe importer.

The Guardian, January 15, 2017

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