Oil hits $77, daily petrol subsidy skyrockets to N6.07bn

The rise in global crude oil prices has pushed the daily subsidy on Premium Motor Spirit, also known as petrol, to N6.07bn.

Petrol subsidy, which was removed in March 2020, re-emerged earlier this year as the government has left the pump price of the product unchanged since December despite the increase in global oil prices.

The Nigerian National Petroleum Corporation, which has been the sole importer of petrol into the country in recent years, has been bearing the subsidy cost since it resurfaced.

An analysis of data collated by our correspondent on Monday showed that the landing cost of petrol imported into Nigeria rose to N240.17 per litre as of June 25.

The PUNCH exclusively reported last week that the landing cost of petrol rose to N231.98 per litre on June 16 from an average of N143.60 per litre in December, with an expected retail price of N254.90 per litre.

The Group Managing Director, NNPC, Mallam Mele Kyari, said last Tuesday that to fully recover costs, petrol should be selling for N256 per litre at filling stations.

“Today, we are paying N162 per litre (for petrol). I am sure many people buy AGO (diesel) in the market and it is selling at N280 per litre in the market today. So (there is) nowhere in the world diesel sells more expensive than PMS,” he had said.

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