FG Now Pays N12.53 Subsidy per Litre of Petrol

Reports have shown that the federal government as at February 5 subsidized Premium Motor Spirit (PMS) otherwise known as petrol by N12.53 per litre.

According to the latest price template from the Petroleum Product Pricing Regulatory Agency (PPPRA), the figure is N2 higher than what was paid on February 4.

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It explained that without the subsidy and given the landing cost of the product, it ought to be sold at N157.53 per litre by major and independent oil marketers.

According to the template, the expected open market price is the actual price of the product without subsidy and it was based on the current exchange rate of N306.95 to a dollar.

A breakdown of the template put the landing cost of the commodity at N138.16 per litre, while the total distribution margins stood at  N19.37 per litre bringing the total cost of the commodity to N157.53 per litre.

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Further analysis showed the cost of the commodity plus freight stood to be $563.44 per metric tonne and an equivalent of N128.97 per litre.

It added that the lightering expenses and Nigerian Port Authority (NPA), charges stood at N2.75 and N0.84 per litre respectively.

The Nigerian Maritime Administration and Safety Agency (NIMASA) charges, according to the PPPRA, stood at N0.22 per litre while the Jetty Throughput Charge N0.60 per litre and storage charge N2.00 per litre.

Petrol imported by independent marketers carried extra financing cost of N2.78.

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