The Federal Government’s daily spending on subsidy for imported petrol has further crashed to N516 million, from a previous high of about N2.06 billion in June, figures released yesterday by the Petroleum Products Pricing Regulatory Agency (PPPRA) have revealed.
Analysis of petroleum pricing data for the previous months showed that petrol subsidy dropped from an average of N2.06bn per day in June to N1.6bn in July, N955m in August, N576m in September and the latest figure of N516m for October 16, 2015.
The drop means government has been saving billions of naira which it had been paying marketers to import refined petrol in order to keep prices low.
Subsidy figures for Premium Motor Spirit (petrol) have been unsteady since January as a result of the unstable price of crude oil in the international market.
Latest data released by the PPPRA for Saturday indicated that the country’s daily subsidy per litre of fuel stood at N12.9.
The overall N516m daily subsidy is realized when N12.9 per litre is multiplied by 40m litres of petrol that Nigerians, according to the PPPRA, consume daily.
The agency, in its pricing template, put the Expected Open Market Price (EOMP) of petrol at N99.9 per litre, while the regulated retail price is N87 per litre. The difference between the EOMP (N99.9) and retail price (N87) is the subsidy (N12.9) on a litre of fuel.
A rise in crude oil prices, by implication, means a rise in the amount of subsidy paid by the federal government for the importation of PMS.
The Executive Secretary of the PPPRA, Farouk Ahmed, had explained earlier in the year that although the country witnessed a period when subsidy on the product was zero and even negative, this changed based on the fact that crude oil prices had increased in the international market.
The lowest average daily petrol subsidy record since oil price began its descent in 2014 stands at N0.90 kobo per litre or N36m daily, recorded in December 2014. The subsidy figures have been fluctuating since then, rising up to N2.06bn (or N51.61/litre) in June and down to N516m (or N12.9 per litre) by Saturday.

omenka:
By the time Engineer Buhari is done fixing this rickety car handed to him by PDP, the party members would have no choice but to take up jobs as apprentices in Baba's workshop.

With every twist of his spanner, we become more and more aware what a disaster the immediate mechanic was.

God bless this man immensely.

Good morning Lalasticlala- hope you had a pleasant night rest..

dialfa:


The drop has nothing to do with the dullard. Look at the graph again. It was as a result of drop in crude oil price. So the country's revenue is even lower than before.
Olodo people.

modath:


But we know what would have happened if PDP were still in power.

Just as we all know the all time high of 2011-2014 didn't translate to better living for the average joe on the street.

PDP goats just got richer...

dialfa:


The drop has nothing to do with the dullard. Look at the graph again. It was as a result of drop in crude oil price. So the country's revenue is even lower than before.
Olodo people.

dialfa:


The drop has nothing to do with the dullard. Look at the graph again. It was as a result of drop in crude oil price. So the country's revenue is even lower than before.
Olodo people.

dialfa:


The drop has nothing to do with the dullard. Look at the graph again. It was as a result of drop in crude oil price. So the country's revenue is even lower than before.
Olodo people.

dialfa:


And your life is better now?

modath:


But we know what would have happened if PDP were still in power.

Just as we all know the all time high of 2011-2014 didn't translate to better living for the average joe on the street.

PDP goats just got richer...

The lowest average daily petrol subsidy record since oil price began its descent in 2014 stands at N0.90 kobo per litre or N36m daily, recorded in December 2014.

LAGOS — Following the continuous decline in the prices of crude oil in the international market, the amount the Federal Government is paying on subsidy for Premium Motor Spirit, PMS, has dropped to N4.48 per litre.

modath:


Oh em gee!!! , oh yes!!!

But what can you know on an anonymous forum??

Console yourself with the believe that everyone on NL is down & out, cool with me..

Now run along & play with your mates in the playground.

dats wot some pple dont undastand

dialfa:


The drop has nothing to do with the dullard. Look at the graph again. It was as a result of drop in crude oil price. So the country's revenue is even lower than before.
Olodo people.

omenka:
By the time Engineer Buhari is done fixing this rickety car handed to him by PDP, the party members would have no choice but to take up jobs as apprentices in Baba's workshop.

With every twist of his spanner, we become more and more aware what a disaster the immediate mechanic was.

God bless this man immensely.

Good morning Lalasticlala- hope you had a pleasant night rest..

kokoA:
Buhari effect.