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Following a persistent drop in crude oil prices which warrants refiners to pay less for crude, Nigeria’s fuel subsidy has dropped to N1.49 per litre.
The Petroleum Products Pricing and Regulatory Agency, PPPRA, has said the landing cost and marketers margin currently stand at N127.12 and N19 respectively, thus culminating in a total cost of N146.49 per litre.
The agency, which pegs the approved retail price at between N136 and N145, therefore, indicating a subsidy of N1.49 per litre.
The implication is that Nigeria’s fuel subsidy stands at about N89.4 million daily, apparently because almost all the ‘60 million barrels’ the Nigerian National Petroleum Corporation (NNPC) claimed the nation consumes daily are imported from the global market.