One Litre of Fuel in Nigeria to Cost N462/litre Without Subsidy? Unlikely
A DataCheck on NNPCLs Claims

by Olanrewaju Oyedeji

On September 1, the head of the Nigerian Customs accused the Nigerian National Petroleum Company Limited of incorrect daily petroleum consumption figures. The bone of contention was the daily consumption figures and the corresponding rising subsidy bill. There also might have been a merry-go-round about who is to blame for oil theft but the subsidy bill and daily consumption figures were front and centre.

The Customs boss, Hameed Ali, was quoted as saying; “I remember that last year we spoke about this (subsidy). Unfortunately, this year, we are talking about subsidies again. The over N11 trillion we are going to take as debt, more than half of it is going for subsidy. The issue is not about the smuggling of petroleum products. I have always argued this with NNPC,” If we are consuming 60 million litres of PMS per day, why would you allow the release of 98 million litres per day? If you know this is our planned consumption, why would you allow that release?” the Customs boss said.

In reaction, the NNPCL defended the daily petroleum consumption figures, insisting that daily consumption of Premium Motor Spirit, popularly called petrol, across the country was 68 million as against Customs’ claim of 60 million and even offered to submit itself for forensic audit of its PMS supply and subsidy management.

The Oil Company went on to state that ‘N297 was spent per litre’ on petroleum subsidy between January and August 2022. And then stated that without subsidy fuel pump price will be N462/litre.

Naturally, this kind of news further drives up anxiety and leads to speculations among Nigerians who are already dealing with high costs of everything. It might reinforce fear among citizens on the removal of subsidies.

Arguments, counter arguments and speculations aside, will the pump price for petrol really be N462/litre without subsidy?

How factual are the claims by NNPC about subsidy per litre, and how much it will cost to subsidise at either the widely circulated 60 million or 68 million consumption figures?

Continue reading: https://www.dataphyte.com/latest-reports/extractive/oil-and-gas/one-litre-of-fuel-in-nigeria-to-cost-n462-litre-without-subsidy-unlikely/

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The useless government can't float buses and coaches for people to travel to work or various destinations with affordable price fares. That's what other countries are doing if you have the money you can buy fuel if you want it's not by force.

slimfit1:
The useless government can't float buses and coaches for people to travel to work or various destinations with affordable price fares. That's what other countries are doing if you have the money you can buy fuel if you want it's not by force.

Exactly. Some state did it with stunning effectiveness. Useless FG. They are busy tweaking policies to enrich Fulani big men.