Subsidy on petrol costs NNPC N1.2bn daily — PPPRA

Latest data from the Petroleum Products Pricing Regulatory Agency (PPPRA) indicates that petrol under recovery (commonly called subsidy) is now N21.22Kobo per litre.

Data from the agency also shows that the average daily truck-out volume of PMS (petrol) for the week from various depots for supply to retail outlets was 58.46 million litres.

When the subsidy amount of N21.22Kobo per litre is multiplied by the 58.46 million litres average daily truck-out volume of PMS, the amount comes to about N1.2billion.

According to the Executive Secretary of the agency, Abdulkadir Saidu, gasoline (petrol) price at the International market averaged $582.80 per metric tonne.

Landing Cost and Expected Open Market Price (EOMP) averaged 146.85/litre and 166.22/litre respectively for NNPC imports only.

However, he was quick to explain that due to the cost of financing component built into Other Marketers’ imports Landing Cost and EOMP PMS price averaged 149.86/ litre and 169.23/litre respectively.

The weekly data covering 28th November 2019 to 4th December 2019, stressed that the Central Bank of Nigeria (CBN) official Exchange Rate averaged N306.97/$ and the parallel market rate was stable and averaged N360.00/$ during the period.

It also noted that the reference Freight Rate from North West Europe (UK-Coast - UKC) to West African Frontier (WAF) averaged $30.87 per metric tonne, the rate decreased when compared to previous week’s average of $35.45 per metric tonne.

The agency maintained that the total Petrol receipt for the period (28th Non - 4th Dec 2019) was 473,602 million litres, diesel 68,366 million and aviation fuel 20,327 million litres.

The average daily discharges of PMS for the week stood at 67.66 million litres.